Can I work for a competitor if I signed a non-compete in Florida?

Non-compete Agreements in Florida Typical non-compete restrictions include but are not limited to, limitations on a former employee's right to: Work for an employer's competitor. Start a competing business. Solicit clients or resources that belong to the employer, including other employees or contractors.

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Independent Contractor Work Agreement With Non Compete Clause In Florida

Category:

Contracts - Independent Contractors - International

State:

Multi-State

Control #:

US-0028BG

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The Foreign Corrupt Practices Act of 1977 resulted from bribery of foreign government officials by Lockheed Aircraft Company. This Act is designed to prevent the bribing of foreign officials in order to obtain foreign government contracts. Payments to foreign officials for â€œfacilitation,â€ often referred to as grease payments, are not prohibited under FCPA so long as these payments are made only to get officials to do their normal jobs that they might not do, or would do slowly, without some payment. These payments can be made only to secure a permit or license; obtain paper processing; secure police protection; provide phone, water, or power supply; or similar such actions.

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Non-compete Agreements in Florida Typical non-compete restrictions include but are not limited to, limitations on a former employee's right to: Work for an employer's competitor. Start a competing business. Solicit clients or resources that belong to the employer, including other employees or contractors.

Any restrictive covenant not supported by a legitimate business interest is unlawful and is void and unenforceable.

Even workers labeled as “independent contractors”—who should have the freedom to work for multiple clients—are often required to sign non-competes that limit where they can work. Employers often present non-competes as a “take it or leave it” contract, forcing workers either to sign or forego employment.

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.

Every state has its own law regarding the use of non-competes. For example, in California, they are deemed illegal, except when selling a business or a shareholder's stock or dissolution of a partnership; while in Florida, they are allowed but are subject to strict scrutiny.

The ban covers all non-competes for U.S. workers (including employees and independent contractors) with limited carve-outs, and is subject to certain exceptions based on the FTC's statutory authority.

Florida Statutes §542.335 (1) provides that the “enforcement of contracts that restrict or prohibit competition during or after the term of restrictive covenants, so long as such contracts are reasonable in time, area, and line of business, is not prohibited.”

As previously reported (Dentons Alert), the US Federal Trade Commission (“FTC”) issued a regulation earlier this year that effectively bans most non-competes for employees and independent contractors (the “FTC Rule”). The effective date of the FTC Rule is September 4, 2024.

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.

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Under Florida law, in certain circumstances, an independent contractor agreement can contain an enforceable noncompete clause. Non-compete agreements in Florida are legal tools designed to protect legitimate business interests, ensuring that businesses can safeguard their trade secrets.Non-compete agreements for independent contractors forbids them to work for your competition for a specific period after employment. All noncompete agreements for workers, except senior executives, are banned. Noncompete agreements are recognized and enforceable under Florida law. Florida Statute 542.335 provides standards for enforceable non-compete agreements. Noncompete agreements are legally enforceable in Florida. They are deemed valid restraints on trade as long as all legal requirements are met. A Florida independent contractor agreement is essential to protecting your Florida business from fines and other employee misclassification penalties. But it is up to the employer to prove that the time restriction is reasonable, not the employee.

Independent Contractor Work Agreement With Non Compete Clause In Florida

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