Three Things Executive Employees Should Consider Before Signing a Non-Compete in Florida
Florida recently passed a bill making it easier for employers to enforce non-compete agreements (CHOICE Act). As many executives are asked to sign employment contracts with non-competes, and because these agreements are easier for companies to enforce, a comprehensive review is a must. In this article, you will find an overview of three things that you should consider before signing a non-compete agreement in Florida.
- You Need to Understand the Scope of Restricted Activities
Before signing a non-compete agreement, you should carefully review what the non-compete prohibits you from doing. Here is a key point: Many agreements limit more than just direct competition. Beyond that, they can also restrict working for certain clients, engaging in related business ventures, or even investing in competitors. Florida courts will enforce overly broad restrictions if they meet statutory reasonableness standards. Remember, a new law in Florida has made it easier for employers to enforce non-competes. As an executive, broad language could significantly limit future career opportunities. You should clearly understand the industries, roles, and activities covered by the terms of the contract. An experienced Florida non-compete attorney can help you negotiate for more narrow terms if the agreement is currently too restrictive.
- You Should Review the Geographic Limits and the Time Limits
In Florida, a non-compete agreement must clarify two key points: A) The geographic scope of the restrictions and 2) The duration of the restrictions. Notably, non-compete agreements in Florida must have reasonable geographic and time restrictions. With that being said, the term “reasonable” often favors the employer’s interpretation. For executives, these limits can span large territories and multiple years due to the high level of access to sensitive information. A five-year restriction across a statewide or multi-state region could seriously hinder your ability to find new opportunities. You should carefully assess whether the geographic scope aligns with the actual market you served. Negotiating shorter periods or narrower territories may be an option.
- You Should Evaluate the Consideration (Benefits) You are Getting
As part of a non-compete agreement (or an employment agreement with a non-compete clause), you will receive some form of “consideration.” A consideration is any tangible benefits, including your base pay and your other benefits. For executives, this could also include things like a promotion, a signing bonus, equity grants, or specialized training.
With that being said, the benefits should meaningfully offset the limitations on your future career options. If the agreement only offers standard employment terms, you may be giving up too much without adequate return. Before signing the contract, you should ensure that the consideration is clear, documented, and worth the competitive constraints you are accepting in the non-compete.
Get Help From a Florida Employment Attorney Today
Non-compete agreements are enforceable in Florida. As an executive employee, it is imperative that you know exactly what it is in a non-compete agreement before you sign it. An experienced Florida employment lawyer can review the contract, explain your rights, and negotiate for favorable terms.
