The ever-evolving U.S. legal landscape surrounding non-compete agreements has changed yet again, with Florida becoming the latest state to adopt sweeping changes to its statutory non-compete framework. Indeed, the Contracts Honoring Opportunity Investment Confidentiality and Economic Growth (CHOICE) Act, which the state legislature passed in April 2025 but took effect on July 1, 2025, represents perhaps the most significant shift ever in Florida non-compete law. Employers in the Sunshine State should immediately begin assessing the impact that the new law will have on workplace relations, including existing and future restrictive covenant agreements.

What changes with the CHOICE Act?

While many states rely on judge-made law to determine whether and to what extent non-compete agreements and other restrictive covenants are enforceable, Florida has long maintained a statutory framework for assessing such issues. Specifically, under Florida Statute § 542.335, courts evaluate the existence of a legitimate business interest and the reasonableness of such restrictions as to time, geography, and line of business. Though this assessment requires an individualized, case-by-case analysis, courts in Florida have, under this statute, often found that non-compete agreements barring competitive activities for up to two years post-employment are enforceable.

In simplest terms, the CHOICE Act makes it easier for employers to immediately enforce certain non-compete and garden leave agreements (both defined below) and stop any potentially violative behavior, by proving that (1) the employee and employer are covered under the CHOICE Act; (2) the non-compete agreement at issue satisfies the prerequisites of the CHOICE Act; and (3) the employee likely violated the agreement and, thereby, also the CHOICE Act. The CHOICE Act also heightens the evidentiary burden on the employee or subsequent employer to modify or dissolve any injunction, by requiring proof by clear and convincing evidence that the new employment is not competitive or that the prior employer breached the covered agreement before the employee sought employment.

Notably, the Choice Act does not replace Florida’s preexisting statutory framework for restrictive covenants; rather, the two will work in tandem. For the types of agreements regulated by the CHOICE Act – more fully detailed below – the new law will apply. For all other restrictive covenant agreements, however, Florida’s prior statutory framework will still govern.

Who is covered by the CHOICE Act?

The CHOICE Act applies to any employee or independent contractor who earns, or is reasonably expected to earn, a salary greater than twice the annual mean wage of the Florida county (1) of the covered employer’s principal place of business, or (2) if the aforementioned is not located in Florida, of the covered employee’s residence. (Though note that requiring an independent contractor to sign a non-compete agreement could be considered an indicium of a misclassified employment relationship.)

Prong (1) is particularly important because it means that the CHOICE Act potentially applies quite broadly to out-of-state employers with employees located in Florida as well as employees located outside of Florida but whose employer has a principal place of business within the Sunshine State. Time will tell as to whether the CHOICE Act therefore incentivizes some out-of-state companies to move their principal place of business to Florida.

The CHOICE Act does not include a person classified as a health care practitioner as defined in Florida Statute § 456.001. This means that the new law does not apply to individuals licensed, certified, registered, or otherwise authorized to practice a health care profession in Florida, such as physicians, nurses, dentists, pharmacists, and other similar professionals.

What agreements are covered by the CHOICE Act?

As noted, the CHOICE Act does not apply to all restrictive covenants. Rather, it applies to two types of agreements entered into between covered parties: covered non-compete agreements and covered garden leave agreements. The CHOICE Act’s approach to each will be discussed below.

Covered Non-Compete Agreements: This type of agreement involves an arrangement whereby an employee agrees, for up to four years after the termination of employment and within the defined geographic area (reasonableness is not evaluated), not to take on a role with another business, entity, or individual in which (1) the employee would provide similar services to those the employee performed for the previous employer during the three years before employment termination; or (2) it is reasonably likely that the employee would use the confidential information or customer relationships of their former employer in the new role. If applicable, a covered non-compete must include a provision stating that the restricted period must be reduced day-for-day by any nonworking portion of the notice period under a covered garden leave agreement.

Covered Garden Leave Agreements: In these agreements, both parties agree—up to four years in advance—to provide express notice before ending the employment or contractor relationship. The employee commits not to resign before the end of this notice period, while the employer agrees to retain the employee for the duration of the notice period and to continue paying the same salary and benefits the employee received in the month before the notice period began. After the first 90 days, the employee is not required to provide services to the employer. Then, after this initial period, the employee can engage in nonwork activities at any time, may work for another employer with employer permission, and the employer can shorten the notice period by providing at least 30 days’ written notice.

In both agreements, (1) the employer must give the employee written notice of their right to seek legal counsel at least seven days before the agreement is signed, and (2) the employee must also provide written acknowledgment that they have received, or intend to receive, confidential information or customer relationships.

Employer implications of the CHOICE Act

The CHOICE Act will have substantial implications for Florida employers and employees alike. Employers who wish to take advantage of the new employer-friendly provisions of the CHOICE Act should review and revise existing agreements for compliance with the Act’s written requirements. Likewise, employers should revise hiring practices to comply with the notice period required for covered agreements.