Print Article Businesses of all stripes rely on non-compete agreements NCAs to protect their intellectual property IP from former employees. However, innovation companies must remain vigilant in their use because state laws can vary widely regarding what to allow. And some states give broad deference to countersigners to the point where they may not be enforceable as a feasible measure.
It is altogether reasonable for employers to wish to prevent disclosure of trade secrets and other confidential information by employees.
It is understandable that they do not want to invest time and money training an individual who then quits and goes to a competitor or opens a competing business.
On the other hand it is reasonable for an individual who accepts employment to avoid forever being barred from using hard earned skills in pursuing a livelihood. Florida law undertakes to balance these interests, but that balance is not always easy to find.
The starting point is F.
Prior to the amendment F. Said agreements may, in the discretion of a court of competent jurisdiction, be enforced by injunction. A party seeking the issuance of an injunction by a court is required to demonstrate that in the absence of such relief it will suffer irreparable injury.
Lanier Business Products, Inc. The court could consider only the extent to which the agreement was reasonable in time and area covered.
The court was barred from considering factors other than time and area that may have been inequitable to the employee. If the court found the time or area to be unreasonable, it would in effect modify the agreement by limiting the injunction to a reasonable time or over a reasonable area.
The Amendment to F. However, the court shall not enter an injunction contrary to public health, safety, or welfare or in any case where the injunction enforces an unreasonable covenant not to compete or where there is no showing of irreparable injury.
However, use of specific trade secrets, customer lists, or direct solicitation of existing customers shall be presumed to be an irreparable injury and may be specifically enjoined. The amendment allowed the court more latitude by permitting it to determine when a non-compete covenant is unreasonable.
It eliminated the irrebutable presumption of irreparable injury in every case where there was a violation of the covenant. It became necessary for the employer to prove that such an injury would occur before the court would grant an injunction.
The court took note of the fact that the amendment injected the factor of reasonableness as a prerequisite to the issuance of an injunction.
The court went on to reason that in some cases special training provided by the employer may constitute a legitimate business interest. That training must be extraordinary in order to justify an injunction. Training in the performance of perfunctory tasks, or that can be obtained by following directions are not extraordinary.
In Hapney the employee had been trained to install cruise controls and cellular telephones in automobiles. The court found that this training did not rise to the level of a protectible interest of the employer.
In summary Hapney ruled that not every non-compete clause was enforceable. Where there was no "NOTICE The information in this document is designed to provide an outline that you can follow when formulating business or personal plans.
It is provided as is, and isn’t necessarily endorsed or approved by kaja-net.com Due to the variances of many local, city, county and state laws, we recommend that you seek professional legal counsel before entering into any contract or agreement. Non-Compete Agreements – Top 5 Mistakes Employers Make - Fort Lauderdale Employment Litigation Lawyer.
Non-Compete Agreements – Top 5 Mistakes Employers Make. Non-Compete Agreements – Top 5 Mistakes Employers Make That’s just not true. Continued employment is valid consideration for a non-compete agreement in Florida.
Thanks to Allison Lange Garrison (former Law Clerk to Oberman Thompson & Segal, LLC; now practicing law with Gislason & Hunter, LLP) for her superb work in helping the author research and prepare a article, portions of which are reproduced in this article.
A non-compete agreement is a contract between two parties, usually a business and a former employee. Under the contract one party—usually the employee—agrees not to enter or start a similar profession or business in competition with another party—usually the employer.
A Business Purchase Agreement is an agreement where an individual or company ("Buyer") agrees to purchase the Business of another individual or company ("Seller").
sample contract templates you can view, download and print for kaja-net.com are contracts and agreements for many home and business arrangements, including home maintenance services, modeling and photography contracts, rental contracts, event contacts and more.