Florida has long been considered a state that supports employers in protecting their business interests through non-compete agreements. These agreements are contracts that prevent former employees or contractors from working for a competitor, starting a similar business, or using confidential information gained during their employment to the detriment of their former employer. When drafted correctly, non-compete agreements help businesses safeguard trade secrets, customer relationships, proprietary processes, and other valuable assets that give them a competitive edge.
By setting clear boundaries, non-compete agreements provide stability for employers and encourage investment in employee training and client development. They also create a fairer playing field, discouraging situations where sensitive business information can be used unfairly by competitors.
Against the backdrop of growing restrictions elsewhere, Florida has doubled down on its long-standing approach. In recent years, states such as California, Colorado, Minnesota, and Washington, D.C. have enacted laws that either severely limit or outright ban non-compete agreements, viewing them as barriers to worker mobility. The federal government has also signaled an interest in curbing its use through proposed FTC regulations. Though, such actions have been met with legal pushback and the federal government has retreated from enacting its original proposed ban on non-compete agreements.
Florida, however, has taken a sharply different path. With the Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act, which took effect on July 3, 2025, the state has expanded the legal protections available to employers. The Act strengthens employers ability to protect confidential information, preserve customer relationships, and protect the time and resources invested in their workforce.
How the CHOICE Act Reshapes Non-Compete Agreements for Florida Businesses
Here’s what business owners need to know about how the CHOICE Act changes the rules.
A New Framework for Non-Competes
The CHOICE Act introduces an entirely new legal framework for non-compete and garden leave agreements in Florida, one that unequivocally strengthens employers ability to retain control over proprietary information and key business relationships.
The Act applies to “covered employees,” a group that includes both employees and independent contractors earning more than the average annual wage in their Florida county. That figure currently sits at around $120,000 per year, although it varies by location and will likely change over time. Healthcare workers are excluded from coverage, but for most high-earning employees and contractors, the Act provides a clearer, more enforceable standard than before.
Importantly, the CHOICE Act does not replace Florida’s existing non-compete law under Florida Statute §542.335. Instead, it operates alongside it. Employers can still rely on §542.335 for agreements with workers who don’t meet the CHOICE Act’s income threshold, but those that qualify under the new law enjoy stronger presumptions of validity and more powerful enforcement tools.
The law’s reach is also geographically broad. If an employee’s primary place of work, meaning the location where they spend most of their time, is in Florida, the CHOICE Act governs, even if the contract includes another state’s choice-of-law clause. It also applies to employers whose principal place of business is located in Florida, provided that the agreement specifies Florida law as the governing law.
This wide application makes the CHOICE Act especially relevant for companies with remote or multi-state employees. The intention behind the law is that a Florida-based business can now draft restrictive covenants with more confidence that they’ll hold up in court, even if a covered employee later relocates to another state.
Longer and Stronger Non-Compete Terms
Perhaps the most notable feature of the CHOICE Act is the extension of allowable restriction periods. Covered non-compete agreements may now last for up to four years after employment ends, double the duration typically considered reasonable under prior Florida case law.
The Act also shifts the balance of power in enforcement. Once an employer meets the Act’s technical requirements, courts must issue preliminary injunctions preventing the employee from competing, unless the employee can meet a higher standard of proof of clear and convincing evidence to show they won’t use confidential information or perform similar work. That’s a much higher burden than the previous “preponderance of the evidence” standard, which gives employers a far stronger position when seeking fast relief.
The scope of restricted activity is broader as well. Employers can now prohibit former employees or contractors from working for any company that offers services similar to those provided by the employer within the three years preceding termination. This includes preventing the use of confidential information or customer relationships where it is “reasonably likely” that such information would be used in the new role.
For employers, this means non-compete agreements can now cover a wider range of post-employment behavior while remaining enforceable under Florida law.
Garden Leave Provisions
Beyond non-compete clauses, the CHOICE Act also formalizes garden leave agreements, a concept already common in executive contracts and the financial sector. Under a garden leave arrangement, an employee gives advance notice of resignation and continues to receive their regular base salary and benefits during the notice period, while being restricted from working elsewhere or performing competing services.
The CHOICE Act allows garden leave periods to last up to four years, providing long-term protection for employers managing key personnel changes. Employees do not have to perform any work after the first 90 days of garden leave, but remain employed and compensated until the notice period ends or until the employer shortens the period with at least 30 days’ written notice.
This structure gives employers additional flexibility when handling sensitive transitions, such as when an executive, top salesperson, or technical expert leaves for a competitor. It ensures continuity, protects relationships, and minimizes the risk of confidential information walking out the door before a replacement is ready.
What Must Employers Do to Ensure Their Non-Compete Agreements Qualify Under the CHOICE Act?
For a non-compete or garden leave agreement to qualify under the CHOICE Act, employers must meet several key requirements:
The agreement must be in writing and signed after July 1, 2025.
Only agreements signed on or after this date can qualify as “covered” under the CHOICE Act. Older contracts remain governed by Florida Statute §542.335, which still allows non-competes but does not provide the same level of protection available under the new law. Employers should review existing agreements with key employees and prepare updated versions that meet the current requirements.
The covered employee must be informed in writing of their right to seek legal counsel before signing.
This requirement promotes informed consent and helps protect the validity of the agreement in court. Employers should include a clear statement advising the employee to consult independent legal counsel before execution and retain a signed acknowledgment for their records.
Employers must provide the employee with at least 7 days to review the agreement.
The Act requires a minimum seven-day review period before the employee signs. This waiting period prevents claims that an employee was pressured into signing and supports the enforceability of the contract. Employers should plan accordingly during the hiring or promotion process to allow time for proper review.
The employee must acknowledge in writing that they will receive confidential information or have customer relationships during their employment.
This acknowledgment is crucial. It confirms the employee’s access to information or relationships that justify the restriction—one of the fundamental elements for enforceability. Without it, the employer may not qualify for the CHOICE Act’s protections.
The non-compete period must be reduced day-for-day by any portion of a covered garden leave period.
If a covered employee is placed on garden leave, any time spent under that arrangement must be subtracted from the total duration of the non-compete. For example, if an employee serves six months of garden leave, a four-year non-compete would be reduced to 3.5 years. This ensures that the total restriction period remains proportionate and fair.
These technical steps are not optional. Failure to comply with even one can disqualify the agreement from the CHOICE Act’s protections, reverting enforcement to the traditional standard under §542.335. That would eliminate the automatic presumption of enforceability and the higher evidentiary burden placed on employees.
What the CHOICE Act Means for Florida Employers
The CHOICE Act gives Florida employers a more powerful framework for protecting legitimate business interests, such as trade secrets, client relationships, and specialized training, but it also places new emphasis on compliance and documentation. In other words, the law rewards employers who are proactive, precise, and well-prepared.
The stronger protections under the Act are only available if all requirements are met, so it’s not enough to simply have a non-compete clause in place. Every detail from the timing of the agreement to the way the employee is notified plays a crucial role in determining whether the contract qualifies as a “covered” agreement. Missing even one step could make the difference between a fully enforceable contract and one that reverts to Florida’s older, less favorable statute.
For that reason, businesses should take a deliberate, strategic approach when drafting or revising restrictive covenants. Here are the key steps employers should be taking now:
Review and update existing agreements.
Employers should review all current non-compete, non-solicitation, and confidentiality agreements to determine whether they comply with the CHOICE Act.
Agreements signed before July 1, 2025, or those that fail to meet the new notice and acknowledgment requirements, will not automatically benefit from the Act’s stronger enforcement provisions. Updating these agreements now can prevent uncertainty later.
Apply the new framework to upcoming contracts.
New employment offers, executive contracts, and contractor agreements should be drafted in accordance with the CHOICE Act’s structure. This includes specifying that Florida law governs, confirming that the employee meets the covered wage threshold, and including the proper disclosures and acknowledgment language.
Review and update the Choice-of-Law provisions.
Because the CHOICE Act applies to employees whose primary place of work is in Florida—or to employers headquartered in the state—it’s critical that agreements are explicit about which law governs. A clear choice-of-law clause ensures Florida courts have jurisdiction and can apply the CHOICE Act’s employer-friendly standards.
Provide clear documentation and maintain records.
Employers should retain copies of every acknowledgment, notice, and draft of a covered agreement. These records are essential if enforcement becomes necessary, particularly when seeking injunctive relief. Proper documentation demonstrates compliance with the Act’s procedural safeguards.
Seek legal guidance before enforcing or revising agreements.
Because the CHOICE Act interacts with Florida’s pre-existing statute and could overlap with other states’ employment laws, professional legal advice is essential. Issues such as wage thresholds, remote work, or multi-state employment relationships can complicate compliance. Consulting with an employment law attorney before making any updates or taking action ensures the company’s agreements are enforceable and defensible.
Employers who fail to modernize their contracts risk missing out on the Act’s benefits, including the presumption of enforceability and the right to obtain automatic injunctive relief in court. By contrast, businesses that act early can secure stronger protection for their confidential information and customer relationships while avoiding costly disputes.
In short, the CHOICE Act represents an opportunity for Florida businesses to strengthen their legal footing but only if they meet the law’s exacting standards. A careful review today can save significant time, expense, and uncertainty tomorrow.
Protecting Your Business Interests Under Florida’s CHOICE Act
For Florida businesses, the CHOICE Act reinforces the state’s position as one of the most employer-friendly jurisdictions for restrictive covenants. However, with greater power comes greater scrutiny. The courts will still examine whether an employer has a legitimate business interest and whether the agreement complies with statutory requirements.
At The Campbell Law Group, we help Florida employers draft, review, and enforce non-compete and garden leave agreements that protect their competitive advantage while meeting all legal standards. Whether your business operates in Miami, Tampa, Jacksonville, Orlando or anywhere in between, our team can guide you through these recent changes and ensure your agreements hold up when it matters most.
If your company has not yet reviewed its non-compete agreements under the CHOICE Act, now is the time to do so. Contact The Campbell Law Group today for a consultation.