Florida's New Law Fuels Noncompete Agreements—What You Need to Know!

Miramar, Florida, USA - In a notable shift for Florida’s employment landscape, lawmakers have recently passed the Florida Contracts Honoring Opportunity, Investment, Confidentiality and Economic Growth (CHOICE) Act, introducing substantial changes to non-compete agreements and restrictive covenants. Effective July 1, 2025, this legislation is poised to significantly alter the balance of power between employers and employees. The act allows businesses greater leeway to enforce noncompete contracts for up to four years, effectively doubling the previous limit that stipulated a two-year restriction.

The CHOICE Act was passed unanimously by both the Florida House and Senate, a clear reflection of its backing from prominent business interests, including financial powerhouse Citadel. However, it became law without the signature of Governor Ron DeSantis, who opted to take no action on this sweeping legislation. This means that Florida businesses now find themselves on a much more favorable footing when it comes to protecting their proprietary interests from employee poaching.

Details of the CHOICE Act

Under the new legislation, courts are required to grant an employer’s request for an injunction that enforces noncompete or “garden leave” agreements, provided that certain criteria are met. This marks a departure from previous laws that mandated employers to demonstrate the validity of such agreements individually. Legislative findings emphasize that robust legal protections encourage employers to invest in employee training and safeguard critical information.

The CHOICE Act specifically caters to „covered employees,“ those who earn at least twice the annual mean wage of their county, which translates to salaries ranging between approximately $80,000 and $150,000. Importantly, the act delineates two primary types of enforceable agreements: Covered Non-Compete Agreements and Covered Garden Leave Agreements. Each has its own set of rules and requirements to ensure clarity for employees regarding their rights and obligations.

• Covered Non-Compete Agreement: Prohibits employees from working for competitors for up to four years in a designated geographical area.
• Covered Garden Leave Agreement: Requires employees to provide advance notice of their resignation, with continued salary payment during this period.

Both agreements can be enforced only if they are documented in writing, with employees receiving at least seven days to review them with legal counsel. Furthermore, both types of agreements must include notice of employees‘ rights to legal advice, making it a more transparent process for those involved.

Concerns and Criticisms

While many employers welcome this legislative overhaul, concerns linger about the potential adverse effects on small businesses and the general employment atmosphere in Florida. Critics argue that the CHOICE Act could stifle entrepreneurship and innovation by limiting employee mobility and creating an environment where workers may feel trapped. The heightened risk of litigation between businesses could also lead to an uptick in legal disputes.

Moreover, the act’s provisions exempt certain groups, including healthcare practitioners and lower-wage employees, raising questions about whether the law fairly addresses all workers. The Florida legislature has justified the need for the CHOICE Act by asserting that prior methods of safeguarding sensitive information proved to be insufficient, thereby necessitating stronger enforcement mechanisms.

As we look ahead to July 1, 2025, Florida’s employment landscape is set for a substantial makeover. Whether the CHOICE Act will ultimately serve as a boon or a bane for workers remains to be seen. With important implications for the future of job mobility and corporate practices, this legislation will undoubtedly shape the conversation around employment rights and business interests in the Sunshine State.

For more insights on this newly enacted law, Bloomberg Law and The National Law Review provide comprehensive analyses, while the Florida Labor Lawyer offers a deeper dive into the implications of the CHOICE Act for both businesses and employees alike.