Disputes Over Non-Compete Clauses
What Are Some Disputes Regarding Non-Compete Clauses?
When an employee begins working for another company after signing a non-compete provision indicating that they will only work for their present employer, a non-compete clause dispute might occur.
A non-compete provision, also known as a non-compete covenant, prevents a person from working for or with another company.
- Failing to notify the employer of employment or projects with other companies is a common cause of non-compete agreement issues.
- Hiring other employees while still employed by the company
- Unauthorized disclosure of company trade secrets or information
- Allowing competitors access to company products or displays
As a result, the majority of non-compete agreements focus on the protection of proprietary or sensitive information. They may also concentrate on ensuring the employer’s employment status with a single company.
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What Are the Legal Consequences of a Non-Compete Clause Breach?
Consequences of a Breach of a Non-Compete clause depend on the type of breach. If a worker starts working for another firm, it can lead to a variety of penalties, including:
- termination from the company position
- payment of a damages award for losses incurred as a result of the breach of contract (lost profits, lost business contacts, and other losses)
- other infractions, such as infringements of copyright, trademark, patent, or other intellectual property rights
Finally, if the breach resulted from illegal activities (such as illegal insider trading or other white-collar crimes), the consequences may include criminal charges and penalties.
Are Non-Competition Clauses Legal in Every State?
Some states oppose non-compete clauses, claiming that restricting workers’ employment opportunities under a contract is unfair. Florida Law recognizes the legitimacy of a non-compete agreement. Businesses in Florida can reach agreements with their employees that limit their capacity to compete with the company for a specific amount of time. The agreement must, above all, be reasonably essential to safeguard a legitimate commercial interest.
Hiring a Lawyer for Non-Compete Agreement Advice
Non-compete agreements are frequently complicated. If you need help with an employment or contract dispute, especially one including non-compete language, consult with one of our employment lawyers. FL Business Litigation can assist you in analyzing the agreement’s language or help you draft a contract to comply with Florida. In addition, if you need to appear in court, we are, at our core, litigators.
