What Is the Future of Noncompetes in Fla. as Tech Companies Consider Migration?
The Florida legal system ranks as one of the most stringent in the United States as it relates to the enforcement of noncompete agreements (NCAs).
February 08, 2021 at 01:56 PM
5 minute read
The Florida legal system ranks as one of the most stringent in the United States as it relates to the enforcement of noncompete agreements (NCAs). Originated through English common law prevalent in England since the 17th century, historically, courts frowned upon NCAs. They found them to be void, however, as time went on, courts started applying the common law reasonableness test that attempts to balance the conflicts of interest between the employer, employee and society.
NCAs are used by the employer to protect trade secrets, confidential information and prohibit exiting employees from poaching the employer's clients for a period of time. On the other hand, many point out that employer's definitions of trade secrets and confidential information (if defined at all) has become overreaching. Some NCAs include activities like general skill training which employees obtain from on-the-job experience and industry training they receive through their employer. Additional examples include unreasonable geographic restrictions sometimes forcing an employee to move to a new county to obtain employment. Severe NCAs can inhibit career development of employees and impact their ability to earn a living. Over the years, the enforcement of NCAs has been tested across the country.
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