Articles Posted in Non-Compete Agreements

When the wording of a contractual provision is confusing or ambiguous, courts must interpret the contract in a rational manner. Some examples of vague contractual provisions include, “during business hours” and time frames with no clear anchor date, i.e. “within six months of commencement.” The courts generally agree that where one interpretation of a contract…

This article is the second of a two-part series concerning the enforcement of noncompete agreements when the former employee claims that his former employer engaged in illegal conduct. Part I explored the enforceability of contracts which contain illegal terms. This, Part II, addresses how allegations of illegal conduct can affect noncompete agreements particularly. As shown…

Former employees who are accused of breaching their noncompete agreements with their former employer sometimes try to claim that the former employer engaged in illegal conduct, and thus, a noncompete agreement cannot be enforced. While there are certain types of unlawful conduct which a court may cite to justify the denial of request for a…

A non-compete period may not be tolled because an employee is called for active military duty. While an employee may not be denied reemployment on account of a person’s performance of military duty, under the Uniformed Services Employment and Reemployment Rights Act of 1994, 38 U.S.C. § 4311, a court may consider the fact that…

Section 542.335 of the Florida Statutes permits non-compete agreements arising from: a) the sale of a business, b) an employment, agency, or independent contractor relationship, c) a licensing relationship, or d) a partnership. Contracts that restrain one from exercising a lawful profession, trade, or business, and that do not fall within the exceptions of the…

Businesses in highly competitive industries often create and maintain highly confidential business information and trade secrets. Businesses spend substantial amounts of money curating this confidential information. To protect this investment, businesses must take steps to ensure the continued secrecy of its confidential information, such as limiting access and requiring employees with access to sign confidentiality…

Pursuant to Section 542.335, Florida Statutes, a non-compete agreement must be in a writing signed by the party against whom enforcement is sought. Businesses often enter agreements with their employees for specified period with an option to renew. Courts have found that written agreements can be extended beyond their expiration dates when the parties agree…

When a party to a non-compete agreement no longer provides services in that particular “line of business,” they may no longer have a legitimate business interest preventing the other party from competing. However, discontinuance from servicing a specific demographic of customers does not necessary constitute the fact that a party may no longer offer services…

When a business is purchased, often the former owner will enter into a separate employment agreement to provide continuity of service to the customers and a smooth transition from the former owner to the new one. Such agreements typically include a non-compete provision so that the former owner does not attempt to take the customers…

When a company purchases the assets of another company, the circumstances in which the sale takes place could impact the enforceability of the seller’s non-compete agreements with its employees. For example, a 100 percent stock purchase of an active corporation will generally entitle the buyer to enforce the seller’s non-compete agreements. However, if the buyer…