Florida CHOICE Act to Strengthen Enforcement of Noncompete Agreements Effective July 2025

Noncompete agreements are a cornerstone of business protection in Florida, safeguarding trade secrets, confidential information, and client relationships. Florida has long been recognized as a state with employer-friendly noncompete laws, and a new piece of legislation—the Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act—takes this a step further. Passed by the Florida House and Senate and awaiting Governor DeSantis’ signature, this law, effective July 1, 2025, enhances the enforceability of noncompete agreements, offering employers greater flexibility and legal certainty. For businesses relying on these agreements, now is the time to act.

In this article, we’ll break down the CHOICE Act, explore its key provisions, and provide practical guidance for Florida employers to ensure compliance and maximize protection under this groundbreaking law.

Understanding Noncompete Agreements in Florida: The Current Landscape

Noncompete agreements restrict employees from working for competitors or starting rival businesses for a defined period after leaving their employer. In Florida, these agreements are governed by Section 542.335, Florida Statutes, which requires:

• A written, signed agreement.
• Protection of a legitimate business interest (e.g., trade secrets, customer relationships, or specialized training).
• Reasonable restrictions in duration, geographic scope, and scope of business.

Under this statute, employers bear the burden of proving that their noncompete terms are reasonable and necessary. Courts often closely examine these elements, particularly geographic and time restrictions, to balance employer interests with employee mobility.

The CHOICE Act builds on this foundation, introducing a framework that simplifies enforcement for certain agreements and shifts some of the legal burden to employees. Let’s dive into the details.

The CHOICE Act: Strengthening Employer Protections

The CHOICE Act creates two new categories of enforceable agreements—Covered Noncompete Agreements and Covered Garden Leave Agreements—and applies to Covered Employees. A Covered Employee is defined as someone earning (or expected to earn) a salary exceeding twice the annual mean wage of the county where the employer’s principal office is located—or the employee’s county of residence if the employer is based out of state. This targets higher-earning employees likely to possess valuable business knowledge.

Key Provisions of the CHOICE Act

1. Covered Noncompete Agreements: Broader Scope, Easier Enforcement

The CHOICE Act allows Covered Noncompete Agreements to restrict competition for up to four years post-employment, a significant increase over typical durations under Section 542.335. Even more striking, there’s no statutory geographic limit, meaning a noncompete could theoretically span the globe—a major shift from the current law’s reasonableness requirement.

To qualify as a Covered Noncompete Agreement, it must:

• Advise the employee in writing of their right to consult an attorney before signing.
• Include a written acknowledgment from the employee that they’ll receive confidential information or customer relationships during employment.
• Be presented to the employee with at least seven days’ notice before signing.

If paired with a garden leave agreement (see below), the noncompete period is reduced by the length of any nonworking notice period, ensuring fairness in total restriction time.

2. Covered Garden Leave Agreements: A New Tool for Employers

The CHOICE Act introduces Covered Garden Leave Agreements, a novel concept in Florida law. These agreements require employees to provide advance notice—up to four years—before leaving their job, during which they remain on payroll at their base salary (though discretionary bonuses or benefits aren’t required). This allows employers to retain key employees temporarily while transitioning sensitive roles or information.

Like Covered Noncompete Agreements, garden leave agreements require:

• Seven days’ notice before signing.
• Written advice about seeking legal counsel.
• An acknowledgment of access to confidential information or customer relationships.

This provision offers a creative alternative for employers to protect their interests without relying solely on post-employment restrictions.

Enforcement Under the CHOICE Act

The CHOICE Act streamlines enforcement, tilting the scales in favor of employers. Courts must issue a preliminary injunction to stop a Covered Employee from working for a competitor during the noncompete or garden leave period. Once granted, the employee must prove—by clear and convincing evidence—one of the following to dissolve the injunction:

• They aren’t in a competitive role.
• The employer failed to provide promised consideration (e.g., salary) and didn’t cure the failure after reasonable notice.
• The employer is no longer in the relevant line of business.

This reverses the burden of proof from Section 542.335, where employers must justify the agreement’s terms. The CHOICE Act also allows injunctions against new employers hiring the restricted employee, with the same burden-shifting rules.

Additionally, if an employee commits gross misconduct (e.g., breaching confidentiality), employers can reduce salary or benefits during the restricted period without breaching the agreement—a powerful deterrent.

Noncompete agreements not meeting the CHOICE Act’s criteria remain subject to Section 542.335’s stricter standards, making compliance with the new law critical for easier enforcement.

Why the CHOICE Act Matters

The CHOICE Act empowers Florida employers with:

• Extended Protection: Up to four-year noncompete periods far exceed traditional limits.
• Global Reach: No geographic caps broaden the scope of enforceable restrictions.
• Simplified Enforcement: Preliminary injunctions and burden-shifting favor employers in court.
• Flexibility: Garden leave agreements offer a proactive way to manage employee departures.

For businesses in competitive industries, these changes provide a robust shield against talent poaching and intellectual property loss. However, careful drafting is essential to ensure agreements qualify under the CHOICE Act.

Action Steps for Florida Employers

With the CHOICE Act taking effect July 1, 2025, employers must prepare now. Here’s how:

1. Review Existing Agreements: Partner with an attorney to assess whether your current noncompete agreements align with the CHOICE Act.
2. Identify Covered Employees: Calculate salary thresholds based on county wage data to determine eligibility.
3. Revise Contracts: Update agreements to include required notices, acknowledgments, and counsel advisories.
4. Explore Garden Leave: Consider integrating garden leave provisions for key roles.
5. Train HR Teams: Ensure staff understand the new requirements and enforcement options.
6. Act Early: Start revisions now to avoid a last-minute rush as the effective date approaches.

The CHOICE Act transforms Florida’s noncompete landscape, offering employers unprecedented tools to protect their businesses. By extending restriction periods, eliminating geographic limits, and simplifying enforcement, it reinforces Florida’s status as a leader in employer-friendly employment law. Don’t wait—proactive compliance is key to leveraging this law’s benefits.

For guidance on how to draft or modify your company’s noncompete agreements, reach out to our team at Munizzi Law Firm. We’re committed to helping Florida businesses thrive in this new legal environment.

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