As a business owner in Florida, it is crucial to be aware of the various forms of embezzlement that can occur within your organization. Embezzlement refers to the act of stealing or misusing money or other valuable assets that a person has been trusted to handle for an employer or another party. This type of fraud can have devastating consequences for businesses, leading to financial losses and damage to their reputation. An attorney can provide guidance on when litigation may be used to address these concerns or what other options may be available for your business.

Common Forms of Embezzlement

Embezzlers often employ different tactics and schemes to carry out fraudulent activities. It is essential for business owners in Fort Lauderdale and throughout Florida to understand these common forms of embezzlement and take steps to address them:

The Federal Trade Commission recently announced its proposal for a new rule that would ban employers from obtaining non-compete agreements from their employees, something the commission referred to as “a widespread and often exploitative practice that suppresses wages, hampers innovation, and blocks entrepreneurs from starting new businesses.” According to the announcement, prohibiting these agreements would expand employment opportunities by approximately 30 million people and increase salaries by almost $300 billion annually.

What Is a Non-Compete Agreement?

Non-compete agreements – either via a separate contract or a clause in an employee contract – are legal agreements that prevent employees from entering into competition with the employer once their period of employment has ceased. These agreements also bar employees from revealing any of the company’s proprietary information either during or after their employment. Companies typically also have both consultants and independent contractors sign the agreements.

The agreement will also specify the length of time the employee, consultant, or contractor is prevented from working for a competitor of the current employer after their employment ends.

When business owners face issues that threaten their ability to compete in the marketplace, they may be able to pursue business litigation against other companies that have engaged in unfair or deceptive business practices. Antitrust litigation may be appropriate in situations where a company has engaged in illegal actions such as price-fixing, bid-rigging, exclusive purchase agreements, or predatory pricing. Since the federal laws that apply to these issues have not been updated in several decades, it can be difficult to address anti-competitive behavior in the modern marketplace. However, the U.S. Congress is currently considering a number of new laws that may update antitrust regulations in the era of big tech.

Potential Changes to Antitrust Laws

In 2021, lawmakers introduced several pieces of bipartisan legislation that would affect tech companies. These laws include:

There are many types of disputes that may affect a business, and determining the best ways to resolve these conflicts can sometimes be difficult. The approach to addressing business disputes may differ depending on whether a dispute is internal and affects a business's partners, shareholders, or employees, or whether it is external and involves the relationship between a business and other parties. 

While resolving a dispute effectively is likely to be the primary goal in these situations, it may also be necessary to maintain important business relationships and avoid ongoing issues. In many cases, businesses will be looking to find solutions that will allow disputes to be resolved without the need for litigation. Mediation, a popular form of alternative dispute resolution, can be one of the best ways of doing so.

Steps Followed During Business Mediation

Mediation is a relatively informal process that allows the parties to work together to find a mutually beneficial resolution to their dispute. Each party may be represented by an attorney during the mediation process. A mediator, who is a neutral third party, will guide the mediation and help the parties to communicate with each other. The mediator will not make any decisions or force the parties to agree to anything, but they will instead facilitate communication and help the parties explore different options as they work to reach their own agreements. This can be an important benefit of mediation, as it allows the parties to have more control over the outcome of the dispute.

Employment contracts will contain a number of terms that affect both the employer and the employee. In many cases, an employer will want to include terms that protect their interests and prevent employees or former employees from taking actions that could harm the company. These may include non-compete agreements that prevent a person from engaging in unfair competitive activities and non-disclosure agreements that prevent employees from releasing confidential information. In some cases, an employer may also ask employees to sign non-disparagement agreements meant to protect a company’s reputation. By understanding the purpose of these agreements and the restrictions they can put in place, employers and employees can ensure that they are properly protected.

What Is a Non-Disparagement Agreement?

Disparagement may include any statements by an employee or former employee that could harm their employer's reputation. These may include both false statements about a company and factual statements about issues such as workplace policies, the actions of co-workers or supervisors, or the quality of a company’s products or services. Notably, disparagement is different from defamation, which involves false or misleading statements that are meant to cause harm to a company.

A non-disparagement agreement may be included in an employment contract or severance agreement, and it may prohibit a person from making negative statements about their current or former employer. These restrictions may apply to any forms of communication, including posting information on social media, talking to news reporters, or having private discussions with friends, co-workers, or acquaintances. However, a non-disparagement agreement cannot restrict a person’s ability to file a workers’ compensation claim, and an employee will be allowed to speak to investigators from government agencies who are looking into alleged violations of laws or regulations.