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For many businesses in Naples and across Florida, non-compete agreements are an important tool to protect customer relationships, proprietary information, and investments in employee training. When these agreements are violated, the financial impact can be significant, ranging from lost clients to weakened competitive standing. At Boatman Ricci, we help Florida businesses understand the basics of non-compete laws, recognize potential violations, and enforce non-compete agreements when necessary.
What Is a Non-Compete Agreement?
A non-compete agreement is a contract between an employer and an employee (or sometimes a contractor, business partner, or seller of a business) that restricts the individual from competing against the business within a certain time frame, industry, or geographic area.
In Florida, non-compete agreements are governed by Florida Statutes § 542.335, which outlines specific requirements for enforceability.
When Are Non-Compete Agreements Enforceable in Florida?
Not all non-compete agreements are enforceable in Florida. Under Florida law, a non-compete agreement must:
- Protect a “legitimate business interest” such as trade secrets, confidential information, customer relationships, or specialized training;
- Be reasonable in scope regarding time, geography, and industry. For example, courts may enforce a six-month restriction but are more hesitant about overly broad or lengthy restrictions; and
- Be supported by a valid contract, meaning the employee received consideration (such as a job offer or continued employment) in exchange for signing.
If a non-compete agreement fails to meet these criteria, Florida courts may refuse to enforce it.
Common Non-Compete Violations
Non-compete violations occur when a former employee or business partner engages in activities that the agreement prohibits. Common examples include:
- Starting or joining a competing business within the restricted area;
- Soliciting the former employer’s clients or customers;
- Using confidential information to benefit a competitor; and/or
- Recruiting current employees to join a rival company.
In a competitive market like Southwest Florida, even minor violations can cause serious harm to a business’s reputation and profitability.
Legal Remedies for Non-Compete Violations in Florida
If your business is dealing with a non-compete violation, Florida law provides several potential remedies:
Injunctions (Court Orders)
A court may issue an injunction to immediately stop the violator from continuing the prohibited activity (i.e. operating the competitive business). Injunctions are often the most effective way to prevent further harm.
Monetary Damages
Businesses may be entitled to recover damages for financial losses caused by the violation, including lost profits.
Attorney’s Fees and Costs
Under Florida law, the prevailing party in a non-compete dispute may recover attorney’s fees, which can help offset litigation expenses.
How Naples Businesses Can Protect Themselves
To reduce the risk of disputes and strengthen your position in court, businesses should:
- Draft clear, tailored agreements: Avoid “one-size-fits-all” contracts. Customize terms to match your industry and protect your specific business interests.
- Document legitimate interests: Keep records of training programs, client lists, and confidential information that justify the non-compete.
- Act quickly on violations: Delay can weaken your case. Courts often favor businesses that act promptly to enforce agreements.
- Consult legal counsel: An attorney can review agreements for enforceability, guide enforcement actions, and represent your business in court, if needed.
How Boatman Ricci Can Help
At Boatman Ricci, we represent many businesses in disputes involving non-compete agreements and other restrictive covenants. Our attorneys:
- Review and draft enforceable non-compete agreements that comply with Florida law;
- Advise businesses on protecting trade secrets, customer relationships, and other legitimate interests;
- Pursue enforcement through injunctions, damages, or settlements when violations occur; and
- Defend against claims of overly broad or unenforceable restrictions.
We take a detail-oriented approach, working with business owners to achieve practical solutions while minimizing disruption to operations.
FAQ: Non-Compete Agreements in Florida
Are non-compete agreements enforceable in Florida?
Yes, if they meet the requirements under Florida Statutes § 542.335, including protecting a legitimate business interest and being reasonable in scope.
How long can a non-compete last in Florida?
The timeframe must be reasonable. For employees, six months to two years is commonly enforced, but anything longer may face stricter scrutiny. This determination is extremely specific to the facts of the situation such as the type of employment, the nature of the legitimate business interest being protected, etc.
Can an employee fight a non-compete agreement?
Yes. If the agreement is overly broad, does not protect a legitimate business interest, or was not properly supported by consideration, an employee may challenge it in court.
What should I do if a former employee violates a non-compete?
Act quickly. Contact an attorney to seek an injunction and preserve evidence of the violation. Delay may harm your ability to enforce the agreement.
Contact Boatman Ricci Today
Non-compete agreements are a powerful tool for Florida businesses, but only if they are carefully drafted and properly enforced. Whether you’re drafting a new agreement, facing a potential violation, or defending against an unfair restriction, the right legal guidance can make all the difference.
If your business is dealing with a non-compete issue, contact Boatman Ricci today. Our team is ready to help you protect your business interests and resolve disputes effectively.