Articles Posted in Non-Compete Agreements

Florida’s Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act, or CHOICE Act for short, went into effect on July 1, 2025. The Choice Act is a significant piece of legislation because it substantially broadens an employer’s ability to restrict employees and independent contractor from competing against the employer. The Act, applies to employees and…

You may recall last week we discussed Florida’s Choice Act and the changes it may create to the non-compete landscape in Florida. The Choice Act establishes significantly more stringent non-compete restrictions on employees and independent contractors earning, or are reasonably expected to earn, a salary greater than twice the annual mean wage of the Florida…

Florida law on noncompete agreements will likely change on July 1, 2025, under the “Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act” (CHOICE Act). The CHOICE Act will substantially enhance an employers’ ability to restrict certain employees from competing after their employment with the employer ends. The Fort Lauderdale business litigation attorneys of the…

Florida’s general rule prohibits contracts impeding commerce. Fla. Stat. § 542.18. (“Every contract, combination, or conspiracy in restraint of trade or commerce in this state is unlawful.”). However, Florida’s legislature passed house bill 611 and 375 in the mid-1990’s to create an exception for restrictive covenants like non-compete agreements, non-solicitation agreements, and confidentiality agreements under…

Establishing the existence of a legitimate business interest is the foundation to enforcing a restrictive covenant like a non-competition agreement. Fla. Stat. § 542.335 (“The person seeking enforcement of a restrictive covenant shall plead and prove the existence of one or more legitimate business interests justifying the restrictive covenant.”). The law imposes a burden to…

It may be prudent to include a jury trial waiver in some business contracts. Contractual jury trial waivers are enforceable in Florida. Amquip Crane Rental, LLC v. Vercon Constr. Mgmt., Inc., 60 So. 3d 536 (Fla. 4th DCA 2011) (stating a party “may waive its right to a jury trial if the waiver was entered…

A litigant seeking to obtain an injunction usually has to prove it was irreparably harmed to obtain an injunction. Hollywood Towers Condo. Ass’n, Inc. v. Hampton, 40 So. 3d 784 (Fla. 4th DCA 2010) (“To obtain a permanent injunction, the petitioner must establish a clear legal right, an inadequate remedy at law and that irreparable…

It is a good practice for businesses to require its employees to sign restrictive covenants, such as non-compete and confidentiality agreements, to protect trade secrets or confidential business information. If an employee breaches the restrictive covenant, the business could file a lawsuit against the employee to enforce the restrictive covenant. To succeed in the lawsuit,…

We recently wrote articles on a litigant’s ability to recover prevailing party attorney’s fees under the American Rule. The Rule prohibits attorney’s fees unless they are authorized by statutes or by a contract provision. Q.H. v. Sunshine State Health Plan, Inc., 305 So. 3d 543 (Fla. 4th DCA 2020) (“Under the American rule, a court…

Restrictive covenants, such a non-compete and non-solicitation agreements, are important tools for businesses to protect their business interests. Restrictive covenants are enforceable if they are reasonable in time, geographic area, line of business, and supported by a “legitimate business interest.” Fla. Stat. § 542.335. Legitimate business interests can include protection of substantial relationships with specific…