Florida’s CHOICE Act Strengthens Non-Compete Agreements

By: Adam S. Chotiner

On July 3, 2025, Florida Governor Ron DeSantis allowed the Florida CHOICE Act to become law. “CHOICE” stands for Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth. Florida was previously recognized as one of the most favorable states in the country for non-compete agreements. While many states are taking steps to restrict or even ban non-compete agreements, the CHOICE Act has made Florida an even more conducive environment for such agreements.

The new law is effective for covered agreements entered into on or after July 1, 2025, and it does not apply to agreements that already existed on that date. The CHOICE Act is intended to apply to more highly compensated workers, but it does not apply to healthcare practitioners.

The CHOICE Act only applies to a covered worker who resides in Florida or to a business with its principal place of business in Florida where the applicable agreement is governed by Florida law. A worker is covered by the CHOICE Act if he or she is a non-healthcare employee or independent contractor earning a base salary at least twice the annual mean wage for the specific Florida county in which the employer has its principal place of business or, if the employer’s principal place of business is outside of Florida, for the Florida county in which the worker resides. In practical terms, this likely means a worker earning close to six figures or more per year.

The CHOICE Act applies to two types of agreements: (1) a covered non-compete agreement and (2) a covered “garden leave” agreement. A covered non-compete agreement restricts a worker from taking on similar roles or using confidential information within a specified geographic area. A covered garden leave agreement allows an employer to end a worker’s active service while continuing salary and benefits for a specified time period in exchange for the worker’s commitment to not work elsewhere without employer approval.

In either case, the CHOICE Act permits a restricted period of up to four years. This is a significant expansion of the current presumptively reasonable limit of two years.

The CHOICE Act also enhances existing law regarding the enforcement of covered agreements. Upon a supported motion by an employer, a court is required to preliminarily prohibit the covered worker from violating the agreement unless the worker can establish by “clear and convincing” evidence that they are not violating the agreement or that the employer previously breached the agreement. A court is also required to prohibit another business from hiring a covered worker in a competing position that violates an applicable agreement. This is a marked change that is intended to make it easier for an employer to obtain a preliminary injunction when enforcing a covered agreement.

Certain procedural requirements must be met for a covered agreement:

• The agreement must be in writing;
• The worker must be advised, in writing, of the right to seek legal counsel before signing the agreement;
• The worker must acknowledge receipt of confidential information or customer relationships; and
• The worker must be given seven days to consider an offer to enter into the agreement.

Consistent with current law, the CHOICE Act provides for the prevailing party in any litigation to recover reasonable attorney’s fees and costs, although in practice a covered agreement is likely to already contain such a provision.

Notably, the CHOICE Act does not repeal, replace or revise Florida’s existing non-compete law, codified at § 542.335, Florida Statutes. As such, businesses can still utilize non-compete agreements that might not qualify as “covered” under the new law.

There are some nuances and open questions in the new law, and for now it is difficult to gauge how courts will interpret and apply it. Businesses should consult with counsel to determine whether and to what extent they may be able to take advantage of the CHOICE Act’s enhanced coverage and enforcement provisions.

The Labor and Employment Law Practice Group at Shapiro, Blasi, Wasserman & Hermann advises businesses of all sizes on employment law compliance and provides creative and effective defensive approaches when claims are asserted. Each situation is different and this article does not constitute legal advice. Please do not hesitate to contact Adam S. Chotiner at achotiner@sbwh.law or (561) 477-7800, or visit our website at www.sbwh.law.

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