Every business in Florida needs to comply with state laws and federal laws when it comes to how they treat and compensate their employees. Like most other states, Florida is an at-will employment state, which makes it easier for businesses to make changes to their employee roster and employment relationships.
While companies and workers can potentially end an employment arrangement at any time, many professionals still negotiate employment contracts when accepting a new job in Florida. Specialty clauses, like restrictive covenants, help protect a company from a worker’s misconduct in the future.
Businesses can derive numerous benefits, including the three below, from adding specialty clauses to their employment contracts.
They protect their intellectual property
A company’s intellectual property includes more than just its copyrighted original works or trademarked logo. Intellectual property protections extend to trade secrets as well. Everything from recipes and special manufacturing processes to client lists may count as trade secrets. Non-disclosure agreements protect your business from someone sharing its trade secrets later.
They minimize the risk of unfair competition
Your competitors might not balk at the idea of bending or openly breaking the law to gain an advantage over your company. They could offer your existing staff members a job at their company or even send someone to infiltrate your company intentionally.
Requiring that new hires with access to sensitive information sign non-compete agreements or non-solicitation agreements can prevent them from going to work for your competitors, starting a computer company, trying to hire your best staff or attempting to sign contracts with your existing customers and clients.
They can help you reduce turnover
If someone considering a job at your company knows that they will limit their local employment options after leaving the job because of your non-compete agreement, they may be less likely to take the job frivolously when they don’t intend to fully commit.
Equally important is how including such terms in your contract can actually give you leverage in negotiations with individual employees. Workers often come to the table making demands, and you can use strict terms in specialty clauses as leverage when negotiating a more favorable arrangement for your business. It is also worth noting that including specialty clauses in employment contracts serves as a powerful deterrent against misconduct, at least for some workers.
Adding the right terms to your employment contracts will help your business thrive as it expands.