| Update Applicable to: | Effective Date |
| All Employers in Florida | July 1, 2025 |
What happened?
On April 29, 2025, the “Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act” (CHOICE), which provides more certainty to employers looking to enforce certain non-compete agreements and agreements offering “garden leave”, is expected to be signed by Governor Ron DeSantis.
Overview:
Florida CHOICE Act (2025) – Employment Agreement Reforms: Effective July 1, 2025, the bill would establish clear rules for enforcing non-compete and garden leave agreements with high-earning employees and contractors. The law creates a presumption that these agreements are valid and enforceable, provided they meet specific criteria.
- Employees or contractors working primarily in Florida (or for a Florida-based employer) who earn more than twice the average wage in their or their employer’s county.
- Employees must receive at least 7 days to review the agreement and be informed of their right to seek legal counsel.
- Non-compete agreements must be limited to 4 years and prohibit similar work that could involve confidential information or client relationships.
- Garden leave agreements require continued salary and benefits during a notice period (up to 4 years), with no work obligations after 90 days. Employees may engage in other activities or work elsewhere with employer approval.
- Legal Enforcement: Courts must issue an injunction against a breaching employee unless the employee or new employer proves—by clear and convincing evidence—that no unfair competition will occur. Employers can reduce pay or take action during the notice period in cases of gross misconduct.
- Jurisdictional Note: If governed by Florida law, the CHOICE Act overrides conflicting laws—even if the employee resides in a state that bans non-competes.
- Healthcare practitioners are excluded.
Source References
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