If the new FTC “final rule” banning noncompete agreements ever goes into effect, and that is a big “if,” Florida businesses will be significantly impacted by the rule. In contrast to many other states, Florida’s legislature has consistently re-affirmed a strong public policy in favor of enforcing noncompete agreements and other post-employment restrictive covenants. Noncompetes are a popular way for employers to retain employees and protect their businesses. Many companies use noncompetes, including companies in the health care, real estate, financial, insurance, and other industries and professions. Florida’s favorable noncompete laws allow employers to restrict an employee’s ability to “go across the street” and poach customers. This is completely contrary to the FTC’s policy as set forth in the final rule.

In Florida, a post-employment agreement that prohibits a former employee from resigning her employment and going to work for a competitor is enforceable so long as the geographical scope and time limits are reasonable, and as long as the restriction is necessary to protect the employer’s “legitimate business interest.” Florida’s courts have historically upheld noncompete agreements as long as the criteria are satisfied, often resulting in court ordered injunctions prohibiting the new employment. Litigation often centers on what is a “legitimate business interest” and whether the geographical and time limits are reasonable. Otherwise, the presumption is that the noncompete ban is enforceable.