Recent Decisions Address 'Reasonable Geographic Scope' In A Non-Compete Agreement

Florida Statute § 542.335(1) provides that Florida courts will enforce non-compete agreements, provided the agreements are reasonable in "time, area and line of business ..." Section 542.335 provides guidance on what constitutes a reasonable time period for a non-compete agreement. See Fla. Stat. § 542.335(1)(d) and (e). The statute, however, provides no similar framework for determining whether the geographic scope contained in a non-compete agreement is reasonable. Instead, section 542.335(1)(c) provides as follows:

If a person seeking enforcement of the restrictive covenant establishes prima facie that the restraint is reasonably necessary, the person opposing enforcement has the burden of establishing that the contractually specified restraint is overbroad, overlong or otherwise not reasonably necessary to protect the established legitimate business interest or interests.

What, then, constitutes a reasonable "area" of business, or geographic scope, which a court will enforce under a non-compete agreement? Recent decisions throughout the United States show some of the factors courts consider in deciding whether...