Understanding the intricacies of non-compete agreements is the first step in deciding whether to use them for business purposes in Florida. This is a simple breakdown of these agreements’ principle aspects and how using them has advantages and disadvantages.
Non-compete agreements are contracts between an employee and an employer outlining employment options after dissolving their working relationship. The contract should ideally create a time-specific request of an employee for not working for competing businesses, the reasons for creating the agreement, and the compensation incentives to employees for signing the agreement. These types of agreements are becoming more common in industries such as technology and pharmaceuticals but are also used in a variety of employment situations.
Benefits and negatives of non-compete agreements
One of the basic underpinnings of non-compete agreements is to prevent direct competition with a former employee. Having this type of agreement can essentially prevent contract disputes and provide employers and employees with a firm understanding of their mutual requirements once the working relationship ends.
Another benefit of a non-compete agreement is that it can reduce employee turnover. If you are looking for long-term stability, having a non-compete agreement can provide better assurance that both employees and employers work toward the success of the company.
However, a downside to non-compete agreements is that they can ultimately lead to many employees leaving the industry. Often, once signed, an agreement can be challenging for former employees to keep their skills sharp in the industry, and they leave to pursue other career opportunities.
If you are still looking for more information about non-compete agreements, reaching out to an attorney you can trust is vital. You should try and meet with an attorney who has significant litigation experience and who understands the complexity of these types of cases. Business law attorneys can provide more clarity of non-compete agreements and contract disputes.
Non-compete agreements can have both helpful and difficult impacts in an industry. The knowledge above may help you decide if they can provide any assistance to your professional endeavors.