How Florida’s New CHOICE Act Impacts Employers and Employees

The state of Florida recently passed a new law, known as the Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act. It took effect on July 1, 2025, and it could have a big impact on how businesses and employees handle non-compete and garden leave agreements.

Whether you are an employer or an employee, here’s what you need to know:

What Is the CHOICE Act?

The CHOICE Act introduces two new enforceable agreements in Florida:

• Covered Non-Compete Agreements: Restrict a covered employee from working for a competitor, with limits on duration and geography.

• Covered Garden Leave Agreements: Prohibit a highly compensated employee from competing while still being paid.

These agreements can last up to four years, longer than Florida previously allowed. The Act does not replace Florida’s existing non-compete law (Fla. Stat. § 542.335), but it adds a more employer-friendly option, especially as it relates to high earners. It also makes it easier for employers to obtain injunctive relief to enforce these agreements.

Who Does It Apply To?

The CHOICE Act applies to:

• High-earning employees or independent contractors in Florida who make at least twice the average local wage.

• Individuals who work primarily in Florida, or whose employer is based in Florida and specifies Florida law in the agreement.

• New contracts signed on or after July 1, 2025.

• Does not apply to licensed healthcare professionals.

Why It Matters

The CHOICE Act is designed to:

• Protect confidential business information and client relationships.

• Make enforcement easier as courts must grant an injunction unless the employee proves otherwise.

• Extend the duration of restrictions for up to 4 years.

• Let the prevailing party recover attorney’s fees and court costs.

Takeaways

Key things to keep in mind:

• This applies to new agreements signed on or after July 1, 2025.

• Employers now have more options to protect talent, trade secrets, and customer relationships.

• The new act does not replace Florida’s existing non-compete law, but rather creates an additional, more employer-friendly option, allowing companies to choose the most advantageous route based on a worker’s status and compensation.

In conclusion, the CHOICE Act gives Florida businesses more power to protect their interests. Whether you are an employer or employee dealing with a new contract or non-compete in Florida, now is a good time to seek legal advice to determine how the CHOICE Act may impact you.