Employment Contracts/Severance/Noncompetes
What types of employment contracts are enforceable?
Written agreements that (1) guarantee employment for a specified period of time, (2) limit the circumstances in which employment may be terminated, or (3) set forth a specific consequence for terminating employment (i.e. mandatory severance pay) are generally enforceable through breach of contract actions.
Are written agreements that only set forth the way an employee is to be paid enforceable?
Generally, agreements of this type (written pay plans) may only be enforced with respect to compensation owed for work already performed. Such agreements typically do not limit an employer’s ability to terminate the relationship, provided that all compensation owed to you is paid.
Should employees have severance agreements reviewed by an attorney?
Yes. Severance agreements typically contain a release of claims by the employee. Counsel may be helpful in ensuring that the employee is releasing only claims he or she intends to release, is not giving up any vested rights to compensation or benefits, and is receiving valuable consideration for all promises and covenants made.
Are employers permitted to require employees to sign a noncompete agreement?
Generally, employers are permitted to do so, and are not required to offer any additional compensation in exchange for signature on the agreement.
Are noncompete agreements enforceable?
Florida law does allow agreements of this type to be enforced in certain circumstances. Typically, the employer is required to show that the employee is competing by utilizing trade secrets, soliciting the employer’s clients or customers, infringing upon the good will of the employer or utilizing specialized training provided by the employer for the benefit of a competitor. Noncompete agreements also must have a reasonable geographic scope (the area(s) where the employer does business) and duration (generally two years or less).