Confidentiality & Technology
Non-Compete
Also: Non Compete
A non-compete restricts specified competitive activity during or after a business relationship. Its scope, duration, parties, and governing legal framework matter.
Lawyer Explanation
A restriction may address work for competitors, ownership of a competing business, or defined competitive activities. Read the actual conduct covered rather than treating the heading as a complete description. Confidentiality and non-solicitation protect different interests and should be evaluated separately.
What It Actually Does
Defines a particular restriction. Read it together with exceptions, remedies, duration, the parties involved, and the commercial relationship; it is not interchangeable with other protective clauses.
Why It Matters
A clause or plan can affect future work, transactions, information use, or continuity. Identify what the parties need to protect and what activities must remain possible before selecting language.
Example
An employer wants to protect customer relationships when a key employee departs. The parties must determine which activities are restricted and whether the agreement and applicable law support that restriction.
What Stewart Law Looks For
- The business interests identified
- the role and activities covered
- duration, territory, and exceptions
- consistency with related agreements.
Common Red Flags
- A restriction presented as automatically enforceable
- undefined competitors or activities
- reliance on outdated legal summaries.
Common Negotiation Points
Define the objective and covered conduct; narrow ambiguous language; coordinate exceptions, duration, and related agreements. The appropriate terms depend on the actual relationship and agreed scope.
Florida & Federal Considerations
Florida
Florida Statutes section 542.335 addresses certain restrictive covenants. Florida also has the CHOICE Act in chapter 542, Part II, for covered agreements. Applicability and requirements need a current, fact-specific assessment.
Federal
The FTC nationwide non-compete rule is not in effect or enforceable. That does not determine whether a particular agreement is lawful under other federal or state rules.
Related Terms
Contracts Where You'll Commonly See It
Frequently Asked Questions
Is this the same as an NDA?
No. An NDA regulates protected information. This concept addresses different conduct and should be reviewed separately.
Can I rely on a definition to decide what my agreement allows?
No. Review requires the complete agreement, related documents, relevant circumstances, and current law. Stewart Law confirms conflicts and scope before providing advice.
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