Non-compete agreements may be enforceable in Florida, but they must meet specific legal requirements under Florida Statute § 542.335 to be valid and enforceable.
Below is a clear breakdown of what makes a non-compete enforceable and the steps to enforce it:
1. Must Be in Writing
- Florida only enforces written non-compete agreements.
2. Legitimate Business Interest
The employer must prove that the restriction is to protect a legitimate business interest, such as:
- Trade secrets
- Confidential business information
- Substantial relationships with specific clients or customers
- Goodwill associated with an ongoing business
- Specialized training provided by the employer
If there’s no legitimate business interest, the non-compete will not be enforced, even if it’s reasonable in scope or time.
3. Reasonableness in Time, Geography, and Scope
Courts evaluate:
- Time – Typically, up to 6 months to 2 years is considered reasonable for former employees.
- Geographic Area – Should match the area where the employer does business.
- Scope of Activity Restricted – Must relate to what the employee actually did for the employer.
If any of these are too broad, the court may modify the agreement rather than void it entirely (this is called “blue-penciling”).
How Non-Compete Agreements can be enforced in Florida
Step 1: Cease and Desist Letter
- Often the first step is sending a formal warning to the former employee (or new employer) demanding they stop the violating conduct.
Step 2: File a Lawsuit
- If the violation continues, the employer files a lawsuit in Florida state court, typically requesting:
- Injunctive relief (a court order to stop the activity),
- Damages (lost profits, etc.), and
- Attorney’s fees (if provided for in the agreement).
Step 3: Request a Temporary Injunction
- Employers often file a motion for temporary injunction to immediately stop the competing activity while the lawsuit is pending.
- To win this, the employer must show:
- The agreement is valid and enforceable;
- There is a legitimate business interest;
- The employee’s actions cause irreparable harm;
- No adequate remedy at law (i.e., money alone won’t fix it);
- The injunction would serve the public interest.
Step 4: Discovery and Trial
- If the case isn’t resolved at the injunction stage, it moves to full litigation where each side gathers evidence.
- The court will decide whether the agreement is enforceable and if a breach occurred.
Common Reasons Non-Competes Are Not Enforced in Florida
- No legitimate business interest.
- Overly broad restrictions (time, geography, or activities).
- Agreement is missing or unsigned.
- The person being restrained was an independent contractor and not a key figure in the business.
- Employer breached their own obligations (e.g., failed to pay final wages).
Important Notes
- Florida courts generally favor enforcement of non-competes more than many other states, but they still scrutinize the terms.
- Independent contractors and sellers of businesses can also be subject to non-competes, but the rules vary slightly.
- Non-solicitation agreements (preventing poaching of clients or employees) and confidentiality agreements are often bundled with non-competes and are also enforceable.
Understanding the aspects of a Florida non-compete agreement helps ensure that both employers and employees are aware of their rights and obligations, reducing the risk of disputes.
Contact the Violette Law Firm to address all your non-compete agreement concerns.