When you think of legal concepts, what comes to mind? Perhaps you think of a dry textbook, packed to the brim with jargon – each word flowing into the next like an all-too-complex chain reaction. Or maybe you think of a concerned face in front of a messy desk in the midst of a high-powered battle. At Ideacreative, we recognize that, for creative professionals as for most people, your business dealings are woven throughout the daily fabric of life. Entrust us with your legal affairs and we will weave our expertise into your very success.
Business contracts involve legal language, but understanding that language can be key even for those in the creative industries. One common agreement used in many kinds of fields is the non-compete clause. So what exactly is a non-compete agreement and what kind of force does it have in Florida?
Non-Compete Agreements Defined
When you enter into employment or a business relationship with a company, you may be asked to sign a document defining the parameters of your time there. This document may contain a non-compete agreement that disallows you from pursuing employment with a competitor of that business for a period of time following contract termination. The agreement may also prevent you from sharing proprietary information with others in the industry. While these agreements are not as common in Florida than in many other states, they do protect companies and their intellectual property in certain creative fields.
Affect on Creative Professionals
One of the first concerns many people have when they carefully read these clauses is how they will impact their future. Specialized skills are often built in one position allowing for re-use in another position by a different company. In today’s competitive workforce, it may even be advantageous to work at multiple organizations of similar profile, building skills and knowledge in a hands-on way through experience.
With contracts introduced to you every day, it’s important to understand your commitments before agreeing to them, especially the meaning of provisions that can affect your lifestyle. A non-compete agreement could keep you from assuming an executive role with a rival company for years, or it could prevent you from training individuals who might one day create a competing company. Be sure to arm yourself with the language of the contract so you can evaluate how non-compete agreements will affect you.
In Florida, non-compete statements follow a set of statutes that help to define how they will be enforceable upon termination of the employment contract. These statements are most enforceable in situations where the receipt of trade secrets or sensitive information is possible. In fact, protection of this sensitive information is sometimes the basis for an injunction to enforce a non-compete clause. For many professionals, even if the subject company could be considered a direct competitor, there may be a valid argument against the non-compete clause if it is restrictive in terms of time frame or geographic locale.
Real-Life Applications
In conjunction with a non-compete clause, you may see a non-solicitation provision that could be used to prohibit you from soliciting a customer base, vendors or other employees of your former company for a period of time and in a particular geographical area.
For example, in a case concerning a non-competition and non-solicitation agreement, an executive sought to block his previous employer from implementing the contract. The court ruled that the non-competition provisions would prevent him from continuing to do business in his field for two years after termination. He argued against the agreement by demonstrating a valid purpose, i.e. the need for continuity in professional relationships with customers, vendors and employees. The court overruled the application of the non-compete clauses.
A similar case arose when an employee of a transportation carrier quit to pursue a competing company. His non-compete agreement stated how the employee would not be allowed to do any work for a competitor. The employee violated this provision when he went to apply to a competing organization. His organization sought an injunction to prevent the employee from working for the competition for the full term outlined in the agreement. However, the employee was successful in arguing that, due to the nature of the business, the non-compete agreement was overly restrictive. It would prohibit the employee from making a living in his field for a significant amount of time. As can be seen in these cases, courts will only enforce non-compete agreements in reasonable terms.
Start Negotiating
As a creative professional, the best way to protect yourself from competing agreements in the future is to negotiate with the employer before you agree to a contract. Be honest and upfront about your intentions. Highlighting points about the creativity you bring to the table or the research work you are pursuing can make it clear that the position you are looking to assume is interactive and connected with others who may have work in the same or similar fields. With creative industries specifically, the production of innovations generally depends on cross-pollination with other companies or professionals. Using non-compete clauses to separate talent and innovation from its origin will deny critics seeing the full creativity and ingenuity that defines a real success.
Using non-compete clauses to cut off avenues of creativity could be harmful in both the workplace and the marketplace in Florida.
