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Articles Posted in Non-Compete Law

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FLORIDA NON-COMPETE AND RELATED TORT LAW: WHEN DO AN EMPLOYEE’S ACTIONS BEFORE ENDING EMPLOYMENT CONSTITUTE TORTIOUS INTERFERENCE AS OPPOSED TO LAWFUL PREPARATION TO COMPETE?

It is well settled in Florida law that “an employee does not violate his duty of loyalty when he merely organizes a corporation during his employment to carry on a rival business after the expiration of his employment.” Fish v. Adams, 401 So.2d 843 (Fla. 5th DCA 1981). Absent a…

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FLORIDA NON-COMPETE AGREEMENTS: CAN A LOST OR STOLEN AGREEMENT BE ENFORCED?

Under Florida law, a restrictive covenant is not enforceable “unless it is set forth in a writing signed by the person against whom enforcement is sought.” Fla. Stat. § 542.335(1)(a).  So, what happens if the written agreement is lost, destroyed or stolen? Generally, the loss or unintentional destruction of a…

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ENFORCEMENT OF NONCOMPETE AGREEMENT: WHEN CAN COURTS CONSIDER INDIVIDUALIZED HARDSHIP?

Under Florida law, noncompete agreements signed after July 1996 are governed by Florida Statutes § 542.335.  This statute is the basis for court decisions as to whether any non-competition contract can be enforced in the State of Florida.  Over the years, court decisions have grappled with two related issues: (1)…

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FLORIDA NON-COMPETE DEFENSE: WHEN DOES A NON-COMPETE CONTRACT EXPIRE?

A non-compete covenant in an employment contract prohibits a former employee from competing with his/her former employer for a specified term after termination of employment. If the worker continues to work for the employer in a status other than an “employee”, then the starting point for the non-compete period may…

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FLORIDA NONCOMPETE DEFENSE: NON-PARTIES WILL NOT BE ENJOINED WHEN THERE IS NO EVIDENCE OF AIDING AND ABETTING

Under Florida law, a restrictive covenant is not enforceable “unless it is set forth in a writing signed by the person against whom enforcement is sought.” Fla. Stat. § 542.335(1)(a).  By this general rule, injunctions to enforce non-compete provisions are primarily entered against the parties to the contract.  However, Florida…

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FLORIDA NONCOMPETE DEFENSE: POST-TERMINATION RESTRICTIONS CAN EXPIRE, EVEN IF EMPLOYEE STAYS ON AS AN AT-WILL EMPLOYEE

A non-competition provision in an employment contract prohibits an employee from competing with his/her employer for a specified term after termination of the agreement.  However, if that employee stays on with the employer on an at-will basis after the term of the written agreement expires, then the agreement does not…

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Florida Non-Compete Clauses and Legitimate Business Interests: Customer Relationships and Goodwill

The use of non-compete covenants by employers to protect business interests is not an uncommon practice. The validity of these covenants is governed by Florida Statute 542.335, which requires: “the employer to plead and prove (1) the existence of one or more legitimate business interests justifying the restrictive covenant and…

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FLORIDA NON-COMPETE CLAUSES AND IRREPARABLE HARM: PRESUMPTION OF IRREPARABLE HARM MAY BE REBUTTABLE IF DAMAGES ARE NOT CALCULATED

Many employment agreements contain covenants not to compete to protect employers from employees competing against them when the employment ends. If the employer seeks to enforce this covenant, it must prove, among other things, that it will suffer irreparable harm if the covenant is not enforced. This irreparable harm is…

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FLORIDA NON-COMPETE AGREEMENTS: WHEN WILL THE COURTS MEASURE THE PERIOD OF THE INJUNCTION

If an employer can successfully meet their burden and establish the necessary elements for a valid non-compete agreement, the court will likely grant an injunction to protect the employer’s legitimate business interests. The injunction will only be granted if it is determined that the former employee breached the valid non-compete…

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NON-COMPETE AGREEMENTS: HOW A BUSINESS TRANSACTION IS CHARACTERIZED CAN AFFECT THE ASSIGNABILITY OF A NON-COMPETE

Non-compete agreements serve to protect an employer’s business interests and prevent employees from engaging in unfair competition. When a business sells its assets, merges with another company, or dissolves entirely, the ability to assign a non-compete agreement is affected differently. Peter Mavrick is a Fort Lauderdale non-compete lawyer who has…

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