In today’s economy, many workers in a variety of fields find the job-search process time-consuming and even frustrating. It can be tempting to accept a job offer immediately if you’ve been seeking one for a long time. Likewise, your current employer may ask you to sign a restrictive covenant, and signing it may determine whether you continue to have a job or not with your employer.
If your employer asks you to sign a non-compete agreement or other restrictive covenant, you should carefully read it and ensure that you completely understand what you’re agreeing to. If you are still unclear, consulting a Florida business lawyer can provide you with a better understanding of the agreement and help you avoid future issues.
Types of Restrictive Covenants
Business competition is beneficial to consumers because it fosters innovation and a wide range of quality and pricing within an industry. However, Florida state law allows some legal agreements to restrict competition in limited ways for reasonable business purposes. This can affect prospective workers, business partners, or consultants in many ways, depending on the type of agreement:
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Non-Compete Agreements
Non-compete agreements are common in industries, preventing employees from using the knowledge they have learned from a former employer to open their own business or work with a competitor. It’s important to read these agreements carefully and ensure they don’t overreach geographic or time limitations. Find out more about Non-compete contracts by clicking here.
While Florida courts may not enforce agreements that go beyond reasonable terms, proving that your contract was unreasonable could result in an expensive and time-consuming legal struggle. It is advisable to reach a reasonable agreement before signing.
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Non-Solicitation Agreements
Non-Solicitation agreements don’t prevent you from entering the same industry after leaving your employer, but they do restrict you from doing business with the clients of your former employer. In some cases, you may also be prohibited from pursuing business prospects with your employer’s vendors or employees. Like non-competes, these agreements should also be specific (e.g., limited to customers with whom the employee worked directly) and limited in duration. Want to read more? Click here!
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Confidentiality Agreements
Confidentiality agreements are also highly frequent when a new employee joins the team or when a contractor is hired to do a specific project. These simply prevent you from using confidential information necessary for doing your job outside of the business that provides you with this sensitive information, such as trade secrets, price lists, and so on. These agreements generally apply to specific, proprietary information—computer codes, formulas, sensitive financial or marketing information, among others.
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Work-for-Hire Agreements
These state that work created by an employee—whether it is art, a computer code, literature, a formula, etc.—belongs to the employer. In the absence of a work-for-hire agreement, the creator (the employee) may have a claim to the work done, even if that person was paid for their time. Before signing this type of agreement, you should carefully assess whether the compensation is enough to give up any claim to the product you will create, among other factors.
How do I find a Business Lawyer near me?
In brief, before signing an agreement that restricts you now and/or in the future, or any type of agreement, it’s crucial to understand its potential ramifications, especially if you’ve been out of work for a long time. Employers may take advantage of your eagerness to find a job by imposing excessive restrictions, which may not be enforceable in court. Therefore, it’s advisable to consult a Florida business lawyer before signing an employment agreement.
At Apfelbaum Law, we are here to walk you through every stage of your business journey in Florida. If you have questions or need legal advice, please contact us!
