How Florida Business Owners Can Protect Their Business Without Non-compete Clauses

At Bryant Taylor Law, we are putting an emphasis on the potential nationwide elimination of non-compete clauses this month. The changes would eliminate all future and current non-compete clauses.

This change would limit the ability of businesses to protect certain internal practices, procedures, and information, but there are still legal avenues to do this even without non-compete clauses.

Certain aspects of your business must be protected and the elimination of these clauses would not prohibit you from protecting what you have built here in Florida. We can help you take the necessary steps to protect your business moving forward.

Restrictive Covenants

Non-compete clauses are a type of restrictive covenant, but they are not the only option. You can still make use of agreements such as confidentiality agreements, non-solicitation clauses, and anti-raiding covenants.

Each of these contract terms would still have legal standing even if the proposed FTC rule moves forward. What is important to understand is that these clauses cannot be used in a way that produces the same result as a non-compete clause.

As a business owner, it may make sense to start today. Define the terms of these covenants, make them robust, and implement them.

Confidentiality Agreements

Confidentiality agreements allow you to protect specific information, training elements, and business practices. These agreements can extend beyond the current employment contract up to the lifetime of an employee and/or business.

Trade secrets are protected by law, but confidentiality agreements provide more specific protection and guidance to employees. It will be important to communicate to employees directly when information communicated to them or documents shared with them fall under their confidentiality agreement. Marking any documents clearly will aid in this process.

Non-Solicitation Clauses

One of the fears with a key employee leaving is the customer base they take with them. Some customers are loyal to the company while others are loyal to the employee they are working with directly.

Non-solicitation clauses can be used to prevent former employees from taking customers with them. This applies to current, former, and even prospective clients that are already in the pipeline. Former employees sometimes try to take these customers to the competition or start their own business and try to grow their clientele by soliciting clients from their former place of employment.

Anti-Raiding Covenant

A former employer may not just target your clients but other employees, as well. An anti-raiding covenant prevents former employees from attempting to convince other employees at your business to leave you for the competition.

These will be harder to implement should the FTC rule go into effect, but you can still employ certain elements of anti-raiding. This will prevent you from having a sudden mass exodus of strong employees who make your business successful.

Work with an Attorney

Florida business owners will still have options to protect their businesses and retain employees even if the Federal Trade Commission moves forward with the elimination of noncompete clauses. At Bryant Taylor Law, we care for your business and can help you protect your business through effective legal strategy. Contact our team if you need to get ahead of this potential change and are looking for legal pathways to do so.

The following two tabs change content below.

Bryant Taylor