Florida Non-Compete Agreements

So your boss has asked you to sign a non-compete agreement.  Here's what you need to know. 

• Florida Statute 542.335 governs non-competes entered into after 1996, and Florida Statute 542.33 governs non-competes entered into before 1996.

In order for the non-compete to be enforceable, it must:

• be reasonable in time, area, and line of business,
• have reasonable business interests that exist to justify the restrictive covenant, and
• the non-compete must be reasonably necessary to protect the legitimate business interests.

The statute provides a list of non-exhaustive legitimate business interests.  Such interests include:

• trade secrets,
• confidential business information,
• substantial relationships with specific prospective or existing customers, and
• extraordinary or specialized training.

After determining that legitimate business interests do exist, a court will determine if the time and geographical restrictions of the non-compete are reasonable.  In Florida, less than six (6) months is presumptively reasonable, and more than two (2) years is presumptively unreasonable.  Regarding geographical restrictions, courts usually will not a non-compete in which the enforcing party does not do any business.

If you have questions regarding your non-compete agreement, contact Ambuter Law for your free case evaluation.