However, Florida`s non-compete clause recognizes the validity of such agreements. Florida`s Statute § 542.335 sets out the third-party effectiveness requirements. The most recent version of this statute, adopted in 1996, is considered to be very favourable to the economy. As I said before, competition bans differ from state to state and Florida has a non-compete clause that is very favorable to employers. Other states, such as California, are at the other end of the spectrum and do not allow any non-compete clauses at all, except for commercial sales. The fact that the Florida Supreme Court recently drew attention to the adequacy requirements of the non-compete clause is important after other courts criticized Florida`s non-compete clause. For example, in 2015, the New York Court of Appeals declared that Florida`s non-compete clause was unenforceable because it violated New York`s public policy.6 7 Federal and other state courts outside Florida have either narrowly interpreted the law to justify non-enforcement of non-compete rules or, like the New York Court of Appeals, have directly refused to follow the law on public policy grounds. If your former employee violated a non-competition clause, you may have several possible remedies. “Are these competition bans worth the paper on which they are written?” This is the first question I am normally asked when I discuss with employers or workers the application of their competition bans. And my answer is usually the same. Agreements are usually worth the paper on which they are written because they are applicable in Florida in certain situations. Non-Florida courts were particularly concerned about a provision in the Florida Statute that prevents courts from considering whether the application of the non-compete clause is causing economic hardship to the worker.
Given the overall assessment of adequacy, there are a number of factors that influence the applicability of a non-compete clause in Florida. In all the reasons for imposing a non-competition clause, are there periods when they are not applied? The short answer is “yes”, especially when the former employee does not solicit, sell, contact his former customers (provided they do not use confidential information or trade secrets). The general reason is that the former employee`s acts of competition do not really harm the former employer if the clients are still doing business with the former employer and do not transfer their activities to the new employer. Here are my observations on the impact (and the case) of the COVID19 crisis on non-competition rules. The Georgia Court of Appeals to Carson v. Obor Holding Company, LLC, 734 S.E.2d 477 (2012), also refused to comply with a choice provision that requires Florida`s right to a non-compete clause to apply. The court refused to apply Florida law and stated that, under Georgia law, the court must consider and weigh the interests of both parties when considering the adequacy of the restriction, including the portion limited by the non-compete agreement.49 Most states consider harm to the worker or the worker`s ability to earn a living. . .