Florida: New CHOICE Act for Employers
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APPLIES TO Employers with Employees in FL |
EFFECTIVE July 3, 2025 |
QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion
On July 3, 2025, Florida’s Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act (HB 1219) became law, enhancing employers’ ability to enforce non-compete agreements with certain high-earning employees. Covered employees under the law include those earning at least twice the average annual wage in their county (excluding bonuses and commissions), only if the employee primarily works in Florida or the employer is based there and uses Florida law to govern the agreement.
The Act introduces two types of enforceable agreements: traditional non-competes and “garden leave” agreements, where employees remain on payroll (at base salary and benefits) for up to four years during a notice period in which they are restricted from competing. In either case, these agreements can now extend up to four years, which is double the previous statutory presumption, and employers may shorten garden leave periods with 30 days’ notice.
To be enforceable under the CHOICE Act, covered agreements must: (1) be in writing and advise the employee of their right to consult legal counsel, providing at least seven days for review before execution; (2) include a written acknowledgment from the employee confirming receipt of confidential information or substantial client relationships during employment; and (3) specify that any overlapping garden leave period will reduce the non-compete period on a day-for-day basis. For covered “garden leave” agreements, the agreement must allow the employee to stop working after the first 90 days of the notice period and engage in nonwork activities, including working for another employer with permission.
The Act also provides powerful enforcement tools, including mandatory preliminary injunctions against employees and competing businesses that violate covered agreements, and allows employers to recover damages and attorneys’ fees.
Importantly, the CHOICE Act does not replace Florida’s existing non-compete statute, which is codified under Fla. Stat. § 542.335. Instead, it creates a new, more favorable framework for qualifying covered agreements signed on or after July 1, 2025.
Action Items
- Review compensation structures to determine which employees may be covered under the law.
- Consult with legal counsel to update non-compete agreements.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2025 ManagEase