Having the inside track on legal issues as they apply to your business – like agreements that restrict competition between employees and former employers can go a long way to protecting your interest in a growing industry.
Newly minted business owners do not always know what is needed in order to both comply with Florida law and protect their interests, especially when it comes to hiring employees from a competitor – or for HR managers who are provided candidates from competitors. Understanding what a non compete is and how it can affect your business is critical to your success and protection.
For example, if you own an auto body shop and you have just lost one of your best repairman to a competitor because of Mr. Mangler’s generous offer of a higher pay grade, relocation allowance and $500 in tools, you may have recourse under Florida under what is known as a non compete agreement. Mr. Mangler’s offer to your employee may be receiving more than a competitive base hourly rate, but at the expense of your own bottom line and perhaps more damaging on your reputation for a job well done.
Understanding non compete agreements in Florida is more prevalent in the regulated professions, like medicine, where physicians are prohibited from opening up shop within a certain radius of their former employers. So, what are the implications of the non compete if your business in the Tampa Bay area is that of an auto body repair shop?
From the automobile repair manager’s standpoint, as noted, you may need to be careful in how you “lure” your employee away from a competitor – Mr. Mangler’s practice may be all too common and he may not be breaking any laws, but just because it is legal, does not mean it is ethical or in your best company policy. The same could be said of your former employee – was his sudden departure, combined with a signed copy of his new agreement with Mr. Mangler, designed to purposely interfere with your success and do you irreparable harm…….possibly so.
Knowing your rights before hiring employees from a competitor can be a huge boon to your ability to operate a successful auto body shop on the Sunshine State!