Non-Competition Covenants

Florida law allows employers to require their employees to sign non-competition covenants provided that the employer has a “legitimate business interest” justifying the restrictions and ensures that the covenants are reasonable in time, area, and line of business.  The law governing non-competition covenants in Florida sets forth a non-exhaustive list of legitimate business interests, which include (1) trade secrets; (2) confidential business information; (3) substantial relationships with existing or prospective customers; (4) customer goodwill; and (5) extraordinary or specialized training.  If an employee or former employee violates the non-competition covenant, the employer may bring an action against the employee and seek to: (i) obtain an injunction that prohibits the employee from engaging in the competing business, and (ii) recover damages based on the unlawful competition.