Fourth District Addresses Procedural Due Process Issues That Arise When Enforcing A Non-Compete Agreement

On April 17, 2013, Florida's Fourth District Court of Appeal issued a decision in Zodiac Records, Inc., et al., v. Choice Environmental Services, No. 4D12-906 (Fla. 4^th DCA April 17, 2013), reversing a trial court's order enforcing a non-compete agreement. The trial court in Zodiac considered an employer's motion for a preliminary injunction based on a former consultant's alleged violations of a non-compete, non-solicitation and trade secret confidentiality agreement. Id. at *2. Generally speaking, when an employer seeks to enforce a non-compete agreement against a former employee or contractor, the court will presume the non-compete is reasonable if the duration period in the agreement does not exceed two years. See Fla. Stat. § 542.335(1)(d)(1). However, if the non-compete is based upon the protection of trade secrets, the presumption of reasonable duration is extended from two years to five years. See Fla. Stat. § 542.335(1)(e); see also, Zodiac at *2.