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Non-Compete Contracts in the Construction Industry Part 3

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In this three-part article, we are discussing several reasons why contractors should partner with a Sarasota construction attorney to develop non-compete contracts for their businesses. Whether an employee wants to join a competitor or start their own business, a non-compete prohibits an employee from engaging in direct competition with their former employer. Non-compete contracts can protect your company’s assets and are an effective tactic to ensure employee retention.

In parts one and two, we covered what a non-compete should feature and stressed that these contracts should be scribed by one of our Sarasota construction attorneys. In this final section, we will discuss a few more legal issues involving non-compete contracts.

Where is the Work Located?

Construction firms should be mindful of where work is being contributed as each and every jobsite location could bring different legal issues into play depending on the state that the project is located in. This is especially true for non-compete contracts where what’s enforceable in one state may not be enforceable in another. When an employee puts pen to paper, construction firms need to understand what non-compete laws are valid in their area.

Benefits of Having an Attorney Draft Your Contract

When you partner with an experienced construction attorney to draft your non-compete contract, they will assist you with the following tasks:

  • An attorney understands non-compete laws for every state and what locations are suitable for the protection of trade secrets. They will make certain that the non-compete is legally binding in the state you perform work in.
  • An experienced construction attorney can navigate an employer through non-compete laws for each location that a construction firm works in. If your business performs work in several states, this is extremely valuable.
  • An attorney can assist a construction business with determining what employees need non-competes in place. An attorney can gauge the employee’s job status and their exposure to protected materials to determine whether or not a non-compete can be enforced.
  • An attorney understands the restrictions in regard to how long the non-compete can last for and ensure that the duration of the non-compete is considered “reasonable” in a legal context. For example, a non-compete agreement in Florida can typically last anywhere from six months to two years.  
  • An attorney knows how to secure the assets of a construction company and how to define these interests in a contract.
  • A contract can feature a non-compete clause within the agreement, or a completely separate document can be drafted. Depending on your company’s needs, an attorney will know the best way to address the inclusion of a non-compete.

If you would like to speak with a Sarasota 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.