By: Caitlin A. Koppenhaver
Effective July 1, 2025, Florida’s CHOICE Act (Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth) significantly expands the enforceability of noncompete and garden leave agreements, making Florida one of the most employer-friendly states in the country for restrictive covenant enforcement.
Who Is Covered?
The law applies to employees and independent contractors earning more than twice the average annual wage in their Florida county of residence or the employer’s principal place of business. Healthcare practitioners are specifically excluded. Both Florida-based employers and out-of-state companies with Florida employees may fall under the Act.
Noncompete Agreements
Covered noncompete agreements can restrict a former employee from working in a similar role or using confidential information for up to four years after employment ends. To be enforceable, the agreement must be in writing, provided at least seven days before the offer to enter into an employment agreement expires, and must inform the employee of their right to seek legal counsel before execution of the agreement. The employee must also acknowledge they will have access to confidential information or customer relationships.
Garden Leave Agreements
Garden leave provisions allow an employer to require advance notice of resignation up to four yearsduring which the employee remains on payroll with full salary and benefits. The employee is only obligated to work for the first 90 days of that notice period. Similar procedural requirements apply as with noncompetes.
Enforcement
The CHOICE Act presumes these agreements are enforceable. Courts are required to issue injunctions unless the employee proves, by clear and convincing evidence, that their new role will not involve unfair competition or misuse of confidential information, or that the employer failed to uphold their payment obligations during the garden leave period.
What This Means for Employers and Employees
Employers should review and update their agreements to comply with the CHOICE Act’s requirements. Employees entering into these agreements should understand the legal obligations they are assuming, as these restrictions may significantly impact future employment opportunities.
