Product ID: 102288RPT

Covenants Not to Compete in Florida

Thomas J. Gallo — Attorney, Barnes & Thornburg LLP
Covenants Not to Compete in Florida

Covenants not to compete in the State of Florida are governed by statute. See, F.S.A. §542.335. The statute applies to all covenants that became effective on or after July 1, 1996. The previous statute, F.S.A. §542.33 is still effective for all covenants effective prior to July 1, 1996. See, Scarbrough v. Liberty National Life Ins. Co., 872 So.2d 283 (Fla. App. 1 Dist. 2004); North American Products Corp v. Moore, 196 F.Supp.2d 1217, 1228 (M. D. Fla. 2002)(Enforceability of a covenant not to compete governed by statute in effect at the time the agreement was entered into).

Accordingly, three different sets of rules apply to non-compete covenants in Florida: (1) Contracts effective before June 28, 1990; (2) Contracts effective on or after June 28, 1990 but before July 1, 1996, and; (3) Contracts effective on or after July 1, 1996. American Residential Servs., Inc. v. Event Technical Servs., Inc., 715 So.2d. 1048 (Fla. App. 3 Dist. 1998); Cooper v. Thomas Craig & Co., LLP, 906 So. 2d 378 (Fla. App. 2 Dist. 2005).

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