Recent Case Highlights Problem with Non-Competes
by Kemp Brinson
A recent case out of the 3rd Distrct Court of Appeals highlights a problem with non-compete agreements: term limits. Often, an employer and employee will enter into an employment or non-compete agreement that has a term of, say one year. If the employment terminates, the employee will be restricted from competing with the employer for an additional amount of time.
However, employers often don’t consider this question: What happens after the term of the agreement expires? If the employee quites after a year and a half, is he still subject to the non-compete?
The court says: No – the non-compete does not continue past the term of the original agreement. See the opinion: http://www.3dca.flcourts.org/Opinions/3D08-1371.pdf
I have seen this exact problem numerous times. You would be surprised how often this very simple issue is overlooked. The moral: be REALLY careful when entering into non-compete agreements – make sure they do what you think they do.
