How “Restrictive Covenants” Work In Florida
Employment is usually “at-will” in Florida. In other words, an employer is free to fire an employee, or an employee is free to quit and seek employment elsewhere. In many cases, a former employee will find work with another firm that is a direct competitor with the former employer. Some employers want to protect themselves from this situation by having their key employees sign employment contracts with restrictive covenants. Common examples of such covenants include non-compete, non-solicitation, and nondisclosure clauses. But are such restrictive covenants actually enforceable in Florida? The short answer is “yes.” Section 542.335 of the Florida Statutes does expressly state that a contract containing one or more restrictive covenants may be enforceable provided they are “reasonable in time, area, and line of business.” So what exactly does that mean? The Rules Governing Non-Compete and Non-Solicitation Agreements First things first. Any restrictive covenant must be in writing. You cannot enforce an “oral” or “implied” noncompete agreement. There must be a signed agreement between the employer and the employee who is the subject of the covenant. Next, Section 542.335 requires that an employer establish a “legitimate business interest” before enforcing a restrictive covenant. Such interests can include protecting trade secrets or other valuable confidential information, such as customer lists. It may also include customer goodwill associated with the employer’s existing trade or service marks within a specified area. Once the employer establishes a legitimate business interest, it must then show that the restrictive covenant is reasonably related to protecting that interest. As noted above, this standard applies to the “time, area, and line of business.” Breaking this down further: A restrictive covenant against a former employee or independent contractor that lasts less than six months is presumed to be reasonable under Section 542.335. Conversely, a covenant that purports to last more than 2 years is presumed to be unreasonable. The reasonable “area” for a restrictive covenant will largely depend on the scope or the business. An employer who only does business in Miami-Dade, for example, likely cannot use a noncompete clause to prevent someone from taking a similar job in Tampa. But if a company does business throughout the State of Florida, such a restriction could be considered reasonable. Likewise, an employer generally cannot restrict a former employee from taking a job outside the employer’s existing line of business. For instance, if Company A exclusively develops and sells iPhone apps, it probably cannot prevent a former employee from taking a job making Microsoft Windows apps. Speak with a Florida Business Lawyer Today Florida employers often seek restrictive covenants as a form of insurance against an employee turning around and undermining their business. But such agreements are legally complex in nature and are often more difficult to enforce than you might realize. That is why it is important to work with an experienced Tampa business and corporate attorney who can advise you in this area. Contact HD Law Partners today to schedule a consultation. Source: leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0500-0599/0542/Sections/0542.335.html Posted in Business Corporate | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us