The corporate world is notoriously competitive, and as a business owner, you need to garner any possible advantage. A top priority for you is likely safeguarding your investments and intellectual property from getting into the hands of competitors. One tool that has traditionally been used to accomplish this is the use of non-compete clauses and agreements.
A non-compete agreement is typically signed by employees. Essentially, the clause means that employees cannot divulge sensitive information to competitors or branch out on their own by working for the competition subject to certain restrictions. There is a myth that non-compete clauses are not enforceable in the state of Florida. They are utilized all the time, at the moment at least. That being said, these clauses are not without controversy and the Federal Trade Commission (FTC) is expected to vote next April on legislation that would ban non-compete clauses nationwide.
What does this mean for your company?
The main arguments against non-compete clauses is that they stifle free trade and place unfair restrictions on employees. Banning this form of agreement is expected to boost wages by up to $300 billion per year on average, according to the FTC.
Yet, a key component of non-compete clauses is that they are equitable and not severely restrictive. Their terms must be specific and they should only remain valid for a set period of time. Agreements like this can protect an employer while not being too restrictive on staff. Banning non-compete clauses altogether could leave your company exposed and potentially undo much of the hard work you have put in over the years. As a result, you’ll want to consider alternative mitigation strategies sooner rather than later.
We can answer your questions about these proposed changes to the law and help you position yourself to meet them before you are forced to. Contact us to schedule your consultation to see if we are a good fit for your business.