Legal / Legislation News - February 2026

Rock-Solid Employment Agreements: A Must for Florida Contractors

Florida contractors operate in a high-risk, high-competition environment. Whether you employ W-2 field personnel or engage 1099 independent contractor sales representatives, handshake deals and generic templates are no longer sufficient. A properly drafted Employment or Independent Contractor Agreement is not a luxury — it is a core risk-management tool.

1. Protecting Your Company’s Relationships and Goodwill

Florida law, specifically § 542.335, Florida Statutes, allows enforceable non-compete and non-solicitation covenants when they protect a legitimate business interest. Those interests include:

• Substantial relationships with specific customers
• Customer goodwill associated with your trade name
• Trade secrets and confidential information
• Specialized training

If you do not define these interests clearly in writing, you weaken your ability to enforce them later. Your agreements should narrowly tailor geographic scope, duration, and restricted activities to withstand judicial scrutiny.

For irrigation and construction companies, protecting customer lists, pricing structures, vendor relationships, estimating formulas, and project data is critical. These are often protectable trade secrets under the Florida Uniform Trade Secrets Act (FUTSA). Your agreements should clearly define “Confidential Information” and “Company Property” and require return of all electronic and physical materials upon termination.

2. Commission Agreements: Define “Earned” vs. “Due”

Commission disputes are one of the most common sources of litigation between employers and sales reps.

Your agreement must clearly address:

• When a commission is earned (e.g., contract signed? project completed? customer paid?)
• When the commission is due and payable (e.g., after customer payment clears?)
• Whether commissions are contingent upon the company actually receiving payment
• What happens if the employee leaves or is terminated before the commission becomes due
• How is it calculated? (e.g., gross vs. net profit? escalating percentage scale?)

If you do not expressly state that commissions are contingent on customer payment, a court may not assume that condition exists. Likewise, if you do not address post-termination commissions, you invite dispute. Clarity prevents claims for unpaid wages, breach of contract, or even misclassification allegations.

3. W-2 vs. 1099: Classification Matters

Simply labeling someone a “1099 contractor” does not make it so. Control over schedule, tools, training, and supervision are heavily scrutinized under both IRS and Florida law. Misclassification can expose your company to back taxes, penalties, workers’ compensation exposure, and wage claims.

Your Independent Contractor Agreement should reflect true independence — including control over means and methods, separate business identity, and responsibility for taxes and insurance.

4. Additional Critical Provisions

Every Florida contractor should also include:

• At-will employment language (for W-2 employees)
• Clear compensation structure
• Dispute resolution provisions
• Attorneys’ fees clause
• Compliance with E-Verify and safety policies
• Ownership of intellectual property and marketing materials

Practical Takeaway

In this industry, your people generate your revenue — and your risk. Customized, well-drafted Employment and Independent Contractor Agreements protect your workforce investment, customer relationships, confidential information, and profit margins.

Ensuring you have proper agreements now is far less expensive than litigating avoidable disputes later.

Author’s Note: The information contained in this article is for general educational purposes only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.

Author: Benjamin Lute, Managing Partner at Iseley|Fugitt, is an advocate for the irrigation industry and acts as General Legal Counsel for the Florida Irrigation Society. His practice focuses on construction law and litigation, representing contractors and businesses throughout the state.  For more information, feel free to contact the author at (727) 613-1020 or blute@iseleyfugitt.com.