For companies operating within the industrial engineering sector, an investment in equipment, infrastructure, and employee training is a hefty financial burden. This is especially true for manufacturers in the state of Florida, where trends in industry have seen a significant shift over the past generation. Shree Engineering, for example, is a locally based wholesale distributor of pumps, valves, motors, and other industrial components. But, Shree Engineering is not just a distributor. They also provide engineering, fabrication, and field service for every product that they sell.
While an investment in an employee’s training, manufacturing technology, or specialized equipment may be necessary to ensure consistent growth, it can also be one of the most attractive reasons for your employee to jump ship. This is why for many companies in the manufacturing sector, comprehensive non compete agreements are an accepted part of onboarding new staff.
Also referred to as non-compete clauses certain employees will be asked to sign an agreement releasing their employer from liability in the event that they join a competitor, beginning a time of employment with the new company. When approached in this way, it is also a sound investment. If an employee should leave with skills and knowledge that is detrimental to the business interests of the former employer, the potential for harm must be taken into account. These time sensitive agreements prevent employees from taking a job with a direct competitor in order to protect the employer from losing business.
The process of creating a non compete in Florida or maintaining one through a legal challenge has proven to be problematic in recent years. The laws governing non-compete agreements and the enforcement of these agreements within the state of Florida are regularly overturned or rewritten by the courts. Additionally, while there are specific guidelines for what is actionable in a non-compete agreement, the interpretation of a rule such as “a period of time necessary to protect the legitimate interest of the employer.” may vary slightly from case to case. In Florida, there are increasing numbers of cases where restrictive covenants are being enforced explicitly as written, even while the courts have ruled that the time and place restrictions are overly broad.
Hiring a qualified attorney to draw up the non-compete agreement of your employees will ensure that it is properly worded in order to avoid problems in the future. Your attorney will also ensure that the non compete complies with current Florida law.
Employers and employees can both benefit from a properly drafted non-compete agreement. For the employer, the proper wording of a legal non-compete can ensure that your investment in your staff and your infrastructure is protected. By avoiding speculative damages claims, you put yourself in a position where the court will only award your attorney fees, and the cost of the filing. This is an asset to your business.
For your staff, the benefits of the non-compete clause are two-fold. First, it protects their employer in a non-detrimental way. If a personal relationship causes a skilled employee to leave in the middle of a major project, your customer will not be the one to suffer the loss. By signing a non-compete, your employee can help to protect his livelihood as well. Your employee may also have more bargaining power in terms of additional compensation or benefits.
Non compete agreements Florida are a necessity to protect you as an employer; however, it’s important to remember that lack of enforcement and improper handling of a non-compete clause can result in harm to your business. Your non-compete must conform to Florida law with regard to duration, geographical area of coverage, and the type of work that will be protected.
To ensure that your investment in a non-compete clause pays off in the long run, make sure that you create a valid non-compete agreement and enforce it properly.