Florida Covenant Not to Compete for a Construction Business - Noncompetition

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Covenant Not to Compete for a Construction Business - Noncompetition
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FAQ

A covenant not to compete has three elements: (1) a limitation on the work that may be pursued by the employee, (2) a definite time, and (3) a definite geographical area. The time and geographical restrictions are usually straightforward; the limitation on work is a little more complex.

Even if you remain classified as a contractor, a non-compete clause may not be enforceable. Independent contractors are expected to be experts in their chosen field and are likely working for multiple companies at once. If one company attempts to enforce a non-compete clause, your ability to find work may be affected.

Non-competition clauses are governed by Florida Statute §542.335. A non-compete clause can restrict an independent contractor from working for a competitor during the duration the worker is contracted with the company, and for a specific period of time after contract work ends.

From an Indian legal perspective, the Non-compete clause is prohibited under the Law of Contracts. Section 27 of the Indian Contract Act-1872 provides that - Every agreement by which anyone is restrained from exercising a lawful profession or trade or business of any kind, is to that extent void.

Are covenants legally enforceable? Restrictive covenants are usually legally enforceable and binding if they have been set up properly, but can cease to be enforceable after a period of time in some circumstances.

Ignoring a restrictive covenant If you choose to ignore a restrictive covenant, you could potentially face a claim in damages for the breach in addition to any injunctions granted.

You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.

Under Florida law, non-compete agreements may be enforced by the employer so long as they are reasonable with regard to time and geographical area, and protect a legitimate business interest of the employer as defined by Florida statute.

Restrictive covenants are not considered enforceable in all states across the USA. In Florida, they are enforceable, and courts tend to favor employers over employees when enforcing restrictive clauses in a signed agreement.

Under Florida law, non-compete agreements may be enforced by the employer so long as they are reasonable with regard to time and geographical area, and protect a legitimate business interest of the employer as defined by Florida statute.

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Florida Covenant Not to Compete for a Construction Business - Noncompetition