On July 1, 2025, Florida’s Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act took effect, ushering in substantial changes to the state’s non-compete law under Florida Statute § 542.335. The Act significantly enhances employers’ ability to enforce restrictive covenants against certain “Covered Employees,” creating a more favorable legal environment for businesses seeking to protect their competitive interests.
A “Covered Employee” under the CHOICE Act is defined as an individual or independent contractor who earns, or is expected to earn, a salary that is more than double the annual median wage of the county where the employer’s principal place of business is located. If the employer’s principal place of business is outside the state, then it is the county in which the employee resides. Importantly, the CHOICE Act supplements Florida Statute § 542.335 – it does not repeal, replace, or revise it.
Key Provisions Include:
- Extended non-compete periods: Non-compete agreements with Covered Employees may now extend up to four years, doubling the previous presumption of reasonableness, which capped enforceability at two years. Further, no geographic restriction is required for enforceability.
- Facilitated injunctive relief: Courts are now directed to preliminarily enjoin Covered Employees from providing competing services upon a showing of a valid restrictive covenant, easing the burden on employers seeking to enforce these provisions.
- Liability for new employers: The Act permits injunctive relief against new employers who hire individuals subject to enforceable non-compete or garden leave agreements, shifting the burden of proof to the hiring employer.
- Recognition of garden leave agreements: Florida law now formally acknowledges garden leave arrangements, allowing employers to restrict competition for up to four years by continuing to pay employees during the restricted period—even if they are not actively working.
Employers with operations in Florida may want to take quick action to review and revise their restrictive covenant agreements to align with the CHOICE Act’s provisions.
