Restrictive covenant agreements – non-competes, non-solicitation agreements, and NDAs – are among the most commonly used and most frequently misunderstood documents in business.

Florida law on non-compete agreements is unique. Unlike many states that disfavor or outright prohibit them, Florida has a statute that permits non-compete agreements when they meet specific requirements. But “permitted” does not mean “automatically enforceable”. Courts in Florida look carefully at whether the agreement protects a legitimate business interest and whether the restrictions are reasonable in scope, geography, and duration.

A non-disclosure agreement, or NDA, serves a different purpose. It protects confidential information – trade secrets, client lists, pricing, business strategies, or proprietary processes – from being shared or used inappropriately by the person receiving it. NDAs are commonly used when entering into negotiations, hiring employees or contractors, or sharing sensitive business information with a potential partner or investor. A poorly drafted NDA may leave your most valuable information unprotected or create obligations you did not intend to take on.

Non-solicitation agreements restrict a departing employee or contractor from approaching your clients or employees after they leave. Like non-competes, they need to be carefully drafted to hold up. Whether you are a business owner seeking to protect your client relationships and proprietary information, or someone who has been asked to sign a restrictive covenant, having an attorney review the document matters. These agreements carry real consequences — for the people who sign them and for the businesses relying on them. Given ongoing developments at the federal level regarding non-compete enforceability, this is also an area worth monitoring. If you have existing agreements that have not been reviewed recently, it may be time to take another look.