One frequent source of business litigation is lawsuits over enforcement of non-compete agreements employers have with employees.  While non-compete agreements are a good thing to have in place, they are not always enforceable.  Employers and their lawyers need to take care to draft the agreement so that it complies with the law.

The typical kind of non-compete agreement is a contract between an employer and an employee where the employee agrees not to join or start a similar company in competition with the employer. Non-compete agreements can be enforceable in Florida if they are narrowly drafted, and here is a checklist for what to include:

Reasonable in Scope

Non-compete agreements must be reasonable in geographic area, line of business, and time (usually no more than two years).

Legitimate Business Interests Worthy of Protection

The employer must also establish that it has legitimate business interests that justify the non-compete agreement. Legitimate business interests can include: established relationships with customers, confidential business information such as trade secrets, or specialized training methods.

Necessary to Protect Business Interests

Even if the non-compete is reasonable in scope and there is a legitimate business interest, it will be enforced only if it is reasonably necessary to protect the employer’s business interests.  This inquiry is highly dependent on the facts and circumstances of each individual case.

Non-compete agreements can be very important to protecting your business.  It’s a good idea to have such agreements in place with your employees because they will often be scared straight into following it and be fearful of being sued. To learn more about non-compete agreements and their value in your business, consultation with attorneys who are Board Certified Specialists in Business Litigation will prove beneficial to your company.