Client Alert: New Florida CHOICE Act Reshapes Non-Compete Landscape

Florida has enacted the CHOICE Act (Creating Hope and Opportunity for Individuals and Career Employment Act), effective July 1, 2025, introducing substantial changes to the enforcement of non-compete and garden leave agreements. This legislation positions Florida as one of the most employer-friendly states concerning restrictive covenants. Employers are strongly encouraged to review their existing agreements now and consult with legal counsel to ensure compliance and minimize risk under the new law.

Key Provisions of the CHOICE Act

1. Presumption of Enforceability

The Act establishes a presumption that certain non-compete and garden leave agreements are enforceable and do not violate public policy, provided they meet specific criteria. Courts are required to issue injunctions enforcing covered agreements, shifting the burden of proof onto the former employee or poaching employer to establish certain narrow defenses. This marks a significant shift from existing law, which requires employers seeking enforcement to prove the existence of a legitimate business interest supporting the restrictive covenant, irreparable harm, and several other elements. The existing legal standard will continue to apply to agreements that are not covered by the CHOICE Act.

2. Covered Employees

The Act applies to employees or contractors who:

• Work primarily in Florida or for an employer with its principal place of business in Florida.
• Earn or are expected to earn a salary exceeding twice the annual mean wage of the relevant county.
• Are not classified as healthcare practitioners under Florida law.

3. Requirements for Presumptively Enforceable Agreements

Non-Compete Agreements will be presumed to be enforceable if:

1. The employee is informed in writing of their right to seek legal counsel before signing the agreement and is given at least seven days to review the agreement before signing.
2. The employee acknowledges in writing that they will receive confidential information or information about customer relationships during their employment.
3. The employee agrees not to assume a role with or for another business that provides services similar to those provided to the covered employer during the three years preceding the non-compete period, or in which it is reasonably likely that they would use confidential information or customer relationships.
4. The non-compete period does not exceed four years.
5. If the employee is granted a covered garden leave agreement, the non-compete period is reduced day-for-day by any non-working portion of the notice period.
6. It’s important to note that there are no restrictions on the geographic scope of a covered non-compete agreement. 

Similarly, Garden Leave Agreements are presumed enforceable if:

1. The employee is informed in writing of their right to seek legal counsel before signing the agreement and has at least seven days to review the agreement before signing.
2. The employee and employer agree to provide up to four years’ advance notice before terminating employment, which is known as the “notice period.”
3. During the notice period, the employer agrees to pay the employee their regular base salary and benefits.
4. The employee acknowledges in writing that they may receive confidential information or information about customer relationships during their employment.
5. The garden leave provisions provide that:

• After the first 90 days of the notice period, the covered employee is not required to provide services to the covered employer.
• During the remainder of the notice period, the covered employee may engage in nonwork activities, including during normal business hours.
• The covered employee may also work for another employer with the permission of the covered employer during the remainder of the notice period.

Action Steps for Employers

1. Review your existing agreements and assess whether they need modifications to align with the Act’s definition of a “covered” garden leave or non-compete agreement.
2. Restrictive covenants can still be enforced against employees earning less than twice the mean salary for the applicable county. However, employers won’t have a preliminary injunction without demonstrating a legitimate business interest and irreparable harm.
3. Review your company’s confidentiality protocols and ensure comprehensive, up-to-date, and legally compliant policies regarding trade secrets, customer information, and confidential information. While the CHOICE Act only requires employees to acknowledge access to confidential information, implementing additional guardrails enhances overall security.