Posts Tagged Florida Law

Waning Support for Non-Compete Agreements in Florida?

The State of Florida has been a longstanding proponent of noncompete agreements. In 1996 the Florida legislature enacted the current non-compete statute, 542.335 Florida Statutes, which governs all noncompete agreements entered into after July 1, 1996. Due to some of the extreme provisions in this statute, Florida is considered to be one of the most “employer-friendly” states in the country. Florida’s statute expressly provides that noncompete agreements will be enforced as long as “such contracts are reasonable in time, area, and line of business,” and the employer is able to prove “the existence of one or more legitimate business interests justifying the restrictive covenant” and the “contractually specified restraint is reasonably necessary to protect the legitimate interest.” While these provisions are common and reasonable, the statute also includes more extreme provisions that are, without question, designed to protect employers. Specifically, the statute precludes a court from considering any “individualized economic hardship that might be caused to the person against whom enforcement is sought.” Additionally, the statute precludes any contract provision that “requires the court to construe a restrictive covenant narrowly, against the restraint or the drafter of the contract.” Criticism of Florida’s Noncompete Statute by Other States While Florida is considered to be very “employer-friendly,” other states such as California, Illinois and New York are on the other side of the spectrum and are considered to be very “pro-employee.” In fact, noncompete agreements are actually precluded in California except when they are executed in connection with the sale of a business. Courts in these states, as well as Alabama and Georgia, have been especially critical of the more extreme provisions in Florida’s noncompete statute. Courts in these states have gone as far as refusing to enforce choice of law provisions in employment contracts that require the application of Florida law