What is the name of your state?Florida
My friend has been asked to sign a NON-COMPETE/NON-DISCLOSURE AGREEMENT which includes the following damage verbiage:
"LIQUIDATED DAMAGES: Employee agrees that Employer will incur substantial damages if Employee breaches the terms of this Agreement. The Employer will be damaged since the Employer will lose time and expense in training the Employee and damaged by any competition by Employee during the term of this Agreement. Employee acknowledges that it is difficult to prove the exact amount of damages to employer for breach of this agreement by Employee. Therefore, the parties to this Agreement agree that, if the Employee is in breach of this Agreement, the Employee shall be responsible for liquidated damages payable to the Employer in the amount of Forty Thousand Dollars ($40,000). The Employer shall be entitled to recover the liquidated damages in any lawsuit brought under this Agreement. Such damages shall be in addition to injunctive relief or any other relief available to the Employer under the law or in equity."
My question is:
Is this legal in the State of Florida? Is the damage amount of ($40,000 is unreasonable? The agreement is to be signed for one year.
Please, Please advise.
Thank you in advance.
My friend has been asked to sign a NON-COMPETE/NON-DISCLOSURE AGREEMENT which includes the following damage verbiage:
"LIQUIDATED DAMAGES: Employee agrees that Employer will incur substantial damages if Employee breaches the terms of this Agreement. The Employer will be damaged since the Employer will lose time and expense in training the Employee and damaged by any competition by Employee during the term of this Agreement. Employee acknowledges that it is difficult to prove the exact amount of damages to employer for breach of this agreement by Employee. Therefore, the parties to this Agreement agree that, if the Employee is in breach of this Agreement, the Employee shall be responsible for liquidated damages payable to the Employer in the amount of Forty Thousand Dollars ($40,000). The Employer shall be entitled to recover the liquidated damages in any lawsuit brought under this Agreement. Such damages shall be in addition to injunctive relief or any other relief available to the Employer under the law or in equity."
My question is:
Is this legal in the State of Florida? Is the damage amount of ($40,000 is unreasonable? The agreement is to be signed for one year.
Please, Please advise.
Thank you in advance.