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Non-Compete Contracts in the Construction Industry Part 1

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A non-compete or non-competition agreement is a contract between an employer and their employee. By design, a non-compete agreement restricts the employee from immediately joining a competing business after their employment tenure ends at their current company. Unfortunately, as Lakeland construction attorneys, we know that there is not a one-size-fits-all approach to creating these agreements. A non-compete contract requires the attention of a Lakeland construction attorney as the laws related to these contracts are complex and greatly vary from state to state.

Reasons for a Non-Compete

There are many reasons why contractors should require their senior-level employees to sign a non-compete agreement. For starters, regardless of whether the former employee is joining a competitor or starting their own business, the employer wants to make certain that their trade secrets remain protected in order to maintain their value. Another underrated benefit of a non-compete is that it can help ensure employee retention if the contract is enforceable. This is especially important in the construction industry due to the skilled labor gap and a tendency for many professionals to move frequently to what they perceive as the best available offer for their services.

What Every Non-Compete Should Feature

A construction attorney can make certain that your non-compete agreements are fair and enforceable. In order to maintain compliance with state laws, every non-compete should be able to answer the following questions:

  • When is the agreement activated? The non-compete should clearly state when this agreement begins and under what circumstances.
  • What is being protected? The reason for instituting this policy should be stated within the agreement to ensure that both the employer and employee have a full understanding of why this agreement exists.
  • How long is the agreement active? The duration of the agreement should be clearly established within the contract.
  • Where is this agreement active? The contract should state what location is covered within the agreement. For example, the agreement may be for a five-mile radius around downtown Tampa or for all of Hillsborough County or the State of Florida.
  • How will additional compensation be resolved? It’s important to clarify how the employer will be compensated if the former employee violates this agreement. Moreover, an attorney can make certain that there is dispute resolution method in place in the event of a non-compete violation.

For more information on non-compete contracts, please read parts two and three.

If you would like to speak with a Lakeland construction lawyer, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.