Many employers possess confidential information vital to generating profits. Employers routinely entrust employees with this information to facilitate business operations, but employees often leave their job after a few years to work for a competitor. When this happens, the employee takes the confidential information he or she learned to the next job. The employee might…
Continue reading ›Under Florida law, a restrictive covenant is not enforceable “unless it is set forth in a writing signed by the person against whom enforcement is sought.” Fla. Stat. § 542.335(1)(a). So, what happens if the written agreement is lost, destroyed or stolen? Generally, the loss or unintentional destruction of a written document does not affect…
Continue reading ›Under Florida law, noncompete agreements signed after July 1996 are governed by Florida Statutes § 542.335. This statute is the basis for court decisions as to whether any non-competition contract can be enforced in the State of Florida. Over the years, court decisions have grappled with two related issues: (1) whether a non-compete agreement is…
Continue reading ›A non-compete covenant in an employment contract prohibits a former employee from competing with his/her former employer for a specified term after termination of employment. If the worker continues to work for the employer in a status other than an “employee”, then the starting point for the non-compete period may be affected. The determination of…
Continue reading ›Under Florida law, a restrictive covenant is not enforceable “unless it is set forth in a writing signed by the person against whom enforcement is sought.” Fla. Stat. § 542.335(1)(a). By this general rule, injunctions to enforce non-compete provisions are primarily entered against the parties to the contract. However, Florida law allows a court to…
Continue reading ›A non-competition provision in an employment contract prohibits an employee from competing with his/her employer for a specified term after termination of the agreement. However, if that employee stays on with the employer on an at-will basis after the term of the written agreement expires, then the agreement does not automatically renew for another term.…
Continue reading ›The use of non-compete covenants by employers to protect business interests is not an uncommon practice. The validity of these covenants is governed by Florida Statute 542.335, which requires: “the employer to plead and prove (1) the existence of one or more legitimate business interests justifying the restrictive covenant and (2) that the contractually specified…
Continue reading ›Many employment agreements contain covenants not to compete to protect employers from employees competing against them when the employment ends. If the employer seeks to enforce this covenant, it must prove, among other things, that it will suffer irreparable harm if the covenant is not enforced. This irreparable harm is presumed if the employee violates…
Continue reading ›Contracts with covenants not to compete will typically address the anticipated damages that could occur from an employee’s breach of the agreement. When a contract contains a damages provision that is designed for the sole purpose of penalizing the employee from breaking his or her promise, it may be unenforceable. Peter Mavrick is a Palm…
Continue reading ›If an employer can successfully meet their burden and establish the necessary elements for a valid non-compete agreement, the court will likely grant an injunction to protect the employer’s legitimate business interests. The injunction will only be granted if it is determined that the former employee breached the valid non-compete agreement. Once this is determined,…
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