In many industries, employers require employees to sign Non-compete Agreements that limit an employee’s ability to work for a competitor and to solicit customers. Non-compete Agreements generally provide that an employee cannot compete with the employer (e.g., sell same or similar goods and services) and cannot solicit clients of the employer for a certain period of time after the termination of the employment relationship.

Under Florida law, Non-compete Agreements are fully enforceable provided that they meet certain requirements. To be enforceable, the employer must demonstrate that the need for the agreement is supported by legitimate business interests of the employer.

Non-compete Agreements are meant to protect the confidential and proprietary business interests of the employer. If the employer cannot show a legitimate business interest that it seeks to protect, then courts may not enforce it. Legitimate business interests include trade secrets, confidential information, substantial relationships with customers, and specialized training provided by the employer.

The restrictions contained in a Non-compete Agreement must also be reasonable in order to be enforceable, both with respect to the time period of the restriction and the geographical area of the restriction. Under Florida law, any non-compete provision that extends for more than 2 years is presumed unreasonable. Also, if the employer does business only locally, a restriction that prohibits the employee from competing on an international level would be unreasonable.