Question 1

What is Florida’s restrictive covenant statute?

Accepted Answer

Section 542.335: Florida’s Restrictive Covenants statute governs the enforceability of non-compete agreements, non-solicitation agreements, and other restrictive covenants. Key provisions: the covenant must be in writing signed by the person to be restricted, it must protect one or more legitimate business interests, the person seeking enforcement has the burden of proving the covenant is reasonably necessary to protect the legitimate interest, and the court must consider: the nature of the business, the employee’s position and access to information, the geographic scope, and the duration.

Question 2

How does Section 542.335 handle overbroad covenants?

Accepted Answer

Reformation: unlike many states that void overbroad covenants entirely, Florida’s statute expressly authorizes courts to reform (modify) overbroad covenants: the court can narrow the geographic area, shorten the duration, limit the scope of prohibited activities, and otherwise modify the covenant to make it enforceable. This "blue pencil" approach means that: employers have an incentive to draft broad covenants (knowing courts will narrow them if necessary), and employees face a higher burden to invalidate covenants (because the court will try to enforce them in modified form rather than voiding them).

Question 3

What presumptions apply under Section 542.335?

Accepted Answer

Presumptions: duration presumptions: 6 months or less = presumptively reasonable (former employees), 2 years or less = presumptively reasonable (former agents, business sale covenants), 3 years or less = presumptively reasonable (other restrictive covenants), longer than these periods = presumptively unreasonable (the employer has the burden of proving reasonableness). The statute also provides: a presumption of irreparable injury when a legitimate business interest is violated (making it easier to obtain a temporary injunction), and the prevailing party may recover attorney fees and costs.

Non Compete Agreement Restrictive Covenant

Florida Restrictive Covenant Statute (Section 542.335)

Requirements

Reformation (Blue Pencil)

Duration Presumptions

Related Terms

Barnes Walker Business Law

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