Orlando Restrictive Covenants Lawyers Help Florida Firms and Employees

Skilled attorneys effectively protect legitimate business interests and individuals’ rights

Businesses throughout Florida may have justifiable concerns about the risk that their former employees will unfairly compete against them, divulge sensitive material or lure away key personnel. Restrictive covenants can be effective in reducing the risk, but Florida law places limitations on their scope and duration. At H. Clay Parker, Esq. in Orlando, we have the knowledge and skill needed to prepare and enforce restrictive covenants that effectively protect businesses’ economic interests. We are also adept at helping former employees seek relief from excessive restrictions that are impeding their legitimate career ventures.

What are restrictive covenants?

A restrictive covenant is a provision in a contract between an employer and employee that restricts the ability of the employee to use skills or information acquired from the employer to compete against it after leaving the company. To be enforceable under Florida law, a restrictive covenant must be reasonably necessary to protect the company’s legitimate business interests. Many restrictive covenants are too broad in terms of their duration, geographic reach or proscribed activities. If you need a restrictive covenant, we will work diligently with you to design one that balances your need for protection with the need to comply with Florida law.

What are the different types of restrictive covenants?

Varied kinds of restrictive covenants are created to address specific circumstances. These are the principal types:

• Non-compete agreements — It is lawful to enter a non-compete agreement that prohibits an departing employee from joining or establishing a rival company. But the non-compete is valid only to the extent that it is reasonably necessary to protect customer good will and competitive possession associated with the ongoing business, the specific geographical location or marketing area or the employee’s extraordinary or specialized training. In addition, the agreement must be limited to a stated period of time.
• Non-solicitation agreements — One specific type of non-compete agreement prohibits former employees from soliciting business from customers or from luring away other employees. It is subject to the same required purposes and limitations as other non-compete agreements.
• Non-disclosure agreements — It is legitimate to protect your business’s trade secrets and other valuable confidential business or professional information by prohibiting your employees from disclosing them for a specific number of years, but the length of time must be reasonably related to the need for secrecy.

Our attorneys have a thorough understanding of these legal requirements and are experienced in drafting agreements that the courts will accept as valid.

How enforceable are restrictive covenants?

If an employee refuses or neglects to abide by a restrictive covenant, the employer may need to take legal action to enforce it. We are business litigators experienced at pursuing all available options. As a company’s counsel, we typically begin with a cease-and-desist letter to the ex-employee and any other individuals or companies who may be involved. If they refuse to stop, we will file an enforcement action in court, seeking restraining orders, injunctions and/or compensatory damages.

We also represent former employees in resisting enforcement of covenants that exceed legal limits. Courts generally strike down agreements that restrict competition and solicitation for more than two years. Courts also disfavor covenants that impose prohibitions of longer than six months on activities that are not reasonably tailored to the former employer’s business and/or location and that don’t impact the employer’s good will or competitive position. Likewise, courts may void provisions that seek to protect confidential information for more than five years unless a specific need is demonstrated.

Contact a thorough Orlando attorney for help with a restrictive covenant

Clay Parker, Esq. advises Central Florida clients on the formation, review and enforcement of restrictive covenants of all kinds. Please call 407-216-2504 or contact us online to schedule an appointment at our Orlando office. In business litigation matters, we offer a $50 initial consultation.