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 be affected. The determination of…
Continue reading ›An important trend in business contracts today involves the use of arbitration provisions to resolve some or all contemplated disputes that may arise between parties to the contract and sometimes “third-party beneficiaries” of the contract. Contracts are often made for the benefit of a third-party who did not sign the agreements. A third-party beneficiary is…
Continue reading ›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 law allows a court to…
Continue reading ›Most discrimination claims against Florida employers are based on Title VII of the federal Civil Rights Act or under the Florida Civil Rights Act of 1992. A relatively recent case in the federal appellate court that has jurisdiction over Florida federal courts held that claims based on sexual orientation are not covered by the federal…
Continue reading ›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 automatically renew for another term.…
Continue reading ›The Fair Labor Standards Act (FLSA) requires employers to pay overtime compensation to certain employees. 29 U. S. C. §201. There are, however, exceptions to the rule. In automobile dealerships, “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles…” is exempt and not entitled to overtime wages. §213(b)(10)(A) ( “FLSA exemption”). The…
Continue reading ›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 (2) that the contractually specified…
Continue reading ›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 presumed if the employee violates…
Continue reading ›Employers often face the situation where an employee seeks to return to work after medical leave but may no longer be able to handle the duties of his or her job. It is unlawful to terminate an employee for taking medical leave or for having a disability. However, it is lawful for an employer to…
Continue reading ›Contracts with covenants not to compete will typically address the anticipated damages that could occur from an employee’s breach of the agreement. When a contract contains a damages provision that is designed for the sole purpose of penalizing the employee from breaking his or her promise, it may be unenforceable. Peter Mavrick is a Palm…
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