Every state has different rules on non-compete agreements. In Florida, these agreements have a statutory basis, where the focus is on what the covenant covers and what it is intended to protect. Generally, a restraint of trade, such as a covenant not to compete, is unlawful. However, Florida law allows for them under specific circumstances.

Non-compete agreements can protect trade secrets, business secrets, customer lists, existing clients, and other employees. Their primary purpose is to prevent an employee from taking a business owner’s customer list, starting a competing company nearby, and immediately soliciting the business’s customers.

Some businesses attempt to draft non-compete agreements more broadly, aiming to prohibit an employee from being involved in a particular industry altogether. This creates varying degrees of enforceability, with shades of gray regarding what is allowed under the law.

Anyone asked to sign a covenant not to compete should have it reviewed by a lawyer before signing. This ensures they fully understand the terms and what rights they may be relinquishing.