Burr & Forman

03.23.2015   |   Blog Articles, Florida, Non-Compete & Trade Secrets Law, Non-Compete Agreements

Florida Non-Competes and the NCAA Tournament Sweet Sixteen

After a wild weekend of some predictably close games and some stunning upsets, the original 68 teams vying to play among “bracketology’s” fortunate 64 are now whittled down to the sixteen teams left standing. The President of the United States picked Villanova to play deep into the tournament. Alas, a scrappy NC State Wolfpack team knocked out the Wildcats from Philadelphia over the weekend. Nonetheless, many of the powerhouse teams remain, including Wildcats from both Kentucky and Arizona. If you prefer other animals, you can always root for Badgers, Bruins or Cardinals. Pugilistic and militia team names are also available. Indeed, unlike many years loaded with animals of various color, this year’s Sweet Sixteen hosts Fighting Irish, Mountaineers, Spartans and Tar Heels. If you’re feeling Devilish, a blue variety plays against Utes later this week. Only a few more days of college basketball remain before a Monday night in early April when one team will earn the National Championship. All other teams will end their season with a loss. For many coaches, advancement in the NCAA Tournament guarantees another year of coaching at their present school (and possibly a hefty salary increase). For coaches interested in moving to different schools, nothing says “I’m ready!” quite like taking a Cinderella team deep into the three-week national obsession called March Madness. Yes, the free flow of commerce (specifically the free flow of human commerce in the form of transitioning college basketball coaches) is alive and well in NCAA basketball. On the other hand, for anyone who regularly follows this blog, you know that Florida law allows employers and employees to agree in writing to restrict their future employment in direct competition to the current employer. Can you imagine if college basketball teams enforced non-competition agreements among coaches? Sure, it’s unlikely that coaches at the nation’s premier programs would want to leave their schools. Winning programs attract the best available recruits. The best recruits often create the best future teams. The circle of winning continues. The fan base increases, as does the coach’s salary. Why ever leave? The same is true for your business. If your employees find themselves at the top of the pay scale and performing at their peak, they may not want to leave. Of course ̶ as you likely know already ̶ your competitors typically seek only your finest employees. And like college coaches, reputation and salary generally drive either the desire to stay at a current position and company, or a desire to display talents from a different arena. Florida law allows for an avenue to protect businesses from poaching competitors and the losses incurred with departing employees. Florida courts will strictly enforce written, duly executed non-compete agreements among Florida employers and employees. Although there is no statutory format for the actual non-compete language, Florida law has specific boundaries within which a court considers the validity of a non-compete agreement. In very basic terms, Florida law allows increased restrictions on future employment on higher level employees and business owners selling their businesses. Lower level employees entrusted with a company’s trade secrets can also expect future employment and data-use restrictions, however the length of the employment restrictions is typically less than with executives or with employees in management. At Burr & Forman LLP we have attorneys in nine offices throughout the Southeast knowledgeable in this area of the law. Whether your business needs help drafting a non-competition agreement or enforcing a non-competition agreement, it’s important to seek competent counsel experienced in this area of the law. In the meantime, employers should take solace that only sixteen teams remain in the NCAA tournament. That fact alone will greatly increase productivity from last week… even if your alma mater is a Cinderella with a coach soon to depart for a more lucrative coaching opportunity.

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