Non-compete agreements are recognized and enforceable under Florida law. Florida Statute 542.335 provides standards for enforceable non-compete agreements. The standards are generally more favorable to the enforcing party (usually the employer) than in many other states.
The Enforceability of Non-Compete Agreements in Florida In Florida, non-compete agreements are enforceable under Florida Statute 542.335, provided they are reasonable in terms of time, area, and line of business.
Duration & Scope If the restriction is overly broad or unreasonable, it may be deemed unenforceable. A non-compete agreement also cannot prohibit an employee from engaging in any type of employment that is not related to the employer's company interests.
Under Florida law, in certain circumstances, an independent contractor agreement can contain an enforceable non-compete clause.
Independent contractors are not entitled to benefits from the company, such as health insurance or retirement, and are ineligible for unemployment benefits. Independent contractors are even exempt from employment discrimination laws governing wages and hours worked.
Florida Businesses Now Required to Report Earnings of Independent Contractors. Effective October 1, Florida businesses will be obligated to report services received from independent contractor as a result of a new law signed into effect by Governor Ron DeSantis in June. Specifically, Senate Bill 1532 amends Fla. Stat.
compete clause is a legal agreement included in employment contracts or agreements to protect the interests of an employer. It restricts employees from working for a competitor or starting a similar business for a specified period after leaving their current job.
Scope: The Final Rule prohibits an employer from entering into, or attempting to enter into, a non-compete clause with a “worker” (including, e.g., employees and independent contractors) or representing that a worker is subject to a non-compete clause.
Several factors can void or limit the enforceability of a non-compete agreement, including overly broad restrictions, unreasonable time frames or geographical limits, lack of consideration (such as compensation or job opportunities provided in exchange for the agreement), and violation of public policy.