Florida's CHOICE Act (2025): A New Era for Non-Compete & Garden Leave Agreements

Author: Yoel Molina, Esq., Owner and Operator of the Law Office of Yoel Molina, P.A.

08 November 2025

Florida's CHOICE Act (2025): A New Era for Non-Compete & Garden Leave Agreements

In July 2025, Florida enacted major changes to its laws governing non-compete agreements with the passage of the Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act, known as the "CHOICE Act." This legislation marks a significant departure from Florida's previous non-compete framework and creates a new, parallel legal structure that affects how restrictive covenants can be created and enforced. Here's a comprehensive look at what the CHOICE Act means for employers and employees in Florida.

Old Law vs. New Framework

Previously, Florida Statute Section 542.335 governed non-compete and restrictive covenants. Under that regime, courts would enforce such agreements if they protected a legitimate business interest and were reasonable in time, area, and scope. Presumptions based on duration (e.g., six months presumed valid, more than two years presumed invalid) were part of this analysis. However, judicial discretion played a significant role in balancing employer interests against employee rights.

The CHOICE Act does not repeal Section 542.335 but introduces an alternative framework that employers can follow to gain greater predictability and enforcement power, provided they meet specific criteria.

Covered Agreements under CHOICE

The CHOICE Act applies to two types of restrictive covenants:

Covered Garden Leave Agreements: Agreements requiring advance notice of resignation or termination, during which the employee remains employed and compensated but may stop working after a specific period.
Covered Non-Compete Agreements: Post-employment restrictions that limit where and how an employee can work in a similar field.

These agreements must satisfy the requirements of the CHOICE Act to benefit from its protections and presumptions. Agreements that do not meet these requirements fall back under the older Section 542.335 framework.

Who Qualifies as Covered

To qualify as a "covered employee" or "covered contractor," the individual must earn more than twice the annual mean wage for the county in which they work or reside. This calculation includes base salary but excludes discretionary bonuses and benefits.

Healthcare practitioners, as defined by Florida law, are explicitly excluded from coverage under the CHOICE Act.

A "covered employer" is any entity that enters into a CHOICE-compliant agreement with a qualifying employee or contractor, regardless of whether the employer is located in Florida.

Duration, Scope, and Limits

Under the CHOICE Act:

The maximum duration for a non-compete or garden leave period is four years.
A geographic limitation is not required.
The restricted activities must relate to services the employee performed during the previous three years or those where confidential information or customer relationships might reasonably be used.
The non-compete term must be reduced day-for-day by any non-working portion of a garden leave notice period.

Formal and Procedural Requirements

CHOICE-compliant agreements must:

Be in writing and governed by Florida law.
Advise the employee in writing of their right to seek legal counsel.
Be provided to the employee at least seven days before execution.
Include a written acknowledgment by the employee that they will receive or may receive confidential information or develop customer relationships during employment.

Failure to meet these formalities may disqualify the agreement from being enforced under the CHOICE Act.

Enforcement and Injunctive Relief

CHOICE shifts the legal burden significantly in favor of employers. When a covered employer seeks a preliminary injunction, the court must grant it unless the employee can show, by clear and convincing evidence, that:

The restriction is unnecessary to protect legitimate business interests.
The new role would not involve use of confidential information or customer relationships.

Employees must rely only on non-confidential evidence in their defense. Courts are directed to presume that the employee had access to confidential information if they acknowledged it in writing.

Prevailing parties are entitled to attorneys' fees and costs.

Implications for Employers

The CHOICE Act provides:

Greater predictability and stronger enforcement options.
Longer potential enforcement periods (up to four years).
A statutory roadmap to compliance and enforcement.

However, employers must:

Carefully assess employee compensation to determine eligibility.
Follow all procedural steps to ensure enforceability.
Maintain compliance with both CHOICE and Section 542.335 for non-covered employees.

Implications for Employees and Contractors

Employees must:

Understand whether they are covered under CHOICE.
Be cautious when signing agreements and ensure they understand the obligations.
Recognize that the legal burden to invalidate a covered non-compete is now significantly higher.

Employees should consult legal counsel before signing any non-compete or garden leave provision under CHOICE.

Next Steps for Businesses and Attorneys

Employers and counsel should:

Audit all current agreements.
Update templates to meet CHOICE requirements.
Train HR and legal departments on the new compliance procedures.
Monitor judicial interpretations of the CHOICE Act.
Use alternative safeguards like NDAs and non-solicitation clauses alongside CHOICE agreements.

Conclusion

The CHOICE Act introduces a new legal paradigm for restrictive covenants in Florida. While it offers employers more tools and certainty, it also imposes strict compliance obligations. Both employers and employees must understand the new landscape to avoid costly disputes and ensure fair, enforceable agreements.

For legal help with non-compete or restrictive covenant matters in Florida, contact Attorney Yoel Molina at admin@molawoffice.com, call (305) 548-5020 (Option 1), or message via WhatsApp at (305) 349-3637.