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Is a non-compete clause stifling your competitive edge?

If you are a Florida employee who hopes to stay competitive in your field, you might consider reviewing any non-compete clauses in your employment contract. The Fordham Journal of Corporate & Financial Law outlines the basic premises of non-compete agreements, providing a foundation of understanding for Florida workers.

The journal first questions the purpose of such agreements and wonders aloud about their success. Do they truly further the intended goals of corporate employers? The answer may surprise you. The benefits company owners claim include the following:

  • Development of employees, resulting in loyalty from them
  • Reduction in turnover
  • Protection of trade secrets

Those who oppose the restrictive clauses push back with the idea that restrictions in competition hinder your personal growth while also impeding local and national economies. They argue unemployment increases when employers forbid you from seeking better pay at competitive firms.

Opponents further declare non-competes to be an endangerment to free enterprise. After all, competition is not just central to your success; it is also necessary for the flourishing of free markets. If you have been considering opportunities outside of your current workplace, you might first check your initial contract for any restrictions you agreed to when first signing on.

The journal notes that some state legislatures are considering modifications to limit the widespread use of non-compete clauses. If approved, these changes may benefit you. They include:

  • A potential for payment of lost wages if you find yourself between jobs
  • A reduced enforcement period
  • A notification of unenforceability

The federal government is also taking note of limitations created by non-competes. If you have signed a non-compete agreement with your employer, following federal decisions in this matter could be worth your time.

This information is only meant to inform regarding non-compete clauses and is not intended to provide legal advice.

 

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