Articles Posted in Non-Compete Agreements

All businesses, especially those that may become the target of a merger or acquisition, that want their successor entities or assignees to have the right to enforce non-compete agreements against their former employees should include a provision that allows third-parties to enforce the non-compete agreements. Unless a non-compete agreement expressly authorizes enforcement of the non-compete…

The Florida Supreme Court will soon release an opinion that settles whether unidentified prospective patients and referral physicians are protected legitimate business interests within the meaning of Florida’s Non-Compete Statute, § 542.335 Fla. Stat. On March 9, 2017, the Florida Supreme Court heard Oral Arguments in Americare Home Therapy, Inc., Etc. v. Hiles, a medical…

As discussed in prior articles, Florida’s Non-Competition Covenant Statute, § 542.335, permits covenants restraining competition so long as the restrictive covenant meets certain statutory requirements. One of the statutory requirements is that the party seeking to enforce the restrictive covenant must “plead and prove the existence of one or more legitimate business interests justifying the…

An employer can protect its relationships former clients by establishing that an ongoing business relationship exists with the past client, or by presenting competent and substantial evidence to prove the existence of a substantial relationship within the meaning of § 542.335, Florida Statutes. Under Florida law, the key issue is that the court will view…

Florida’s Non-Compete Covenant Statute, section 542.335, establishes certain requirements for covenants restraining competition, and once such statutory requirements are met, the restrictive covenant becomes enforceable. Section 542.335(1)(j) allows restrictive covenants to be enforced through a temporary injunction, which, pursuant to Rule 1.610(a)(1)(A) of the Florida Rules of Civil Procedure, may be granted only if “it…

Non-compete agreements are not always enforceable. Florida typically requires that all competition be allowed, and there shall be no restriction of competition, but there’s a separate statute in Florida, which is 542.335 Florida statutes that governs non-compete agreements. That statute requires that there be certain legitimate business interests of the employer set out in the…

Under Florida law and in many states, there is an obligation of a duty of loyalty by the employee to the employer. That means the employee cannot do acts that would be harmful to the interest of the employer. An example would be an employee who starts a competing business while still working for the…

A trade secret is something that derives independent value because it’s not generally known. An employer wants to ensure that this trade secret is kept secret from its competitors, because it gets a competitive advantage by having this trade secret. An employee’s obligations are not to divulge that trade secret or to let it be…

A non-compete clause is a provision in a contract where one party promises not to compete against another party in certain circumstances. For example, a party agrees not to open a competing business within a certain geographic limit, or possibly a non-solicitation provision is a part of the non-compete provision, not to hire certain employees…

A nonsolicitation agreement basically requires that the person signing it agree not to contact or solicit or obtain clients of another business or sometimes employees of that business. Typically, nonsolicitation agreements will occur either in the sale of a business, where the buyer of the business wants to ensure that it retains the clientele and…