Non-compete agreements are legal in Florida, and they are sometimes used by business owners. If an employee leaves, they cannot start a competing business or work for the direct competition. This incentivizes the employee to stay and ensures that they will not simply leave and take their knowledge of the industry to harm their former business.
However, even though non-compete agreements are legal, there are some potential restrictions. It is important for business owners and employees to understand what limitations may be included in the agreement.
How long does it last?
For one thing, a non-compete agreement is not going to last forever. In Florida, these agreements generally last for a limit of two years. It means that the employee cannot immediately jump to the competition, but they are not barred from working in the industry forever.
Is it a different industry?
Similarly, the business has to be direct competition to the former company, within that same industry. The employee has full discretion to work for businesses in a different industry, offering different products or services.
Is it in a different location?
Finally, even within that same industry, employees can often take jobs in different geographical locations. These companies are not seen as competition. An employee could leave a business in Florida and take a job in California, for example, or sign on with an overseas company in Germany. The agreement may simply mean that they are prohibited from working for direct competition within the same city in Florida.
Disputes over the specifics of a non-compete agreement can arise. It can help the parties involved to work with an experienced attorney as they seek a legal solution.