Florida’s New CHOICE Act Strengthens Employer Non-Compete Rights

What the CHOICE Act Does

Florida has long stood apart from states that restrict or ban non-compete agreements. With the passage of the Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act (the “CHOICE Act”), effective July 1, 2025, the state doubled down on its pro-employer stance—solidifying Florida as one of the most employer-friendly jurisdictions in the nation. State lawmakers have high hopes that this change will protect businesses and improve economic growth.

Codified at Florida Statutes §§ 542.41–542.45, the CHOICE Act strengthens and expands employer rights to enforce non-compete and garden-leave agreements for certain high-earning individuals. The CHOICE Act does not replace Florida’s existing non-compete statute (§542.335) — instead, it creates a second, more powerful enforcement track for high-earning employees.

Who Qualifies as a “Covered Employee”

Unlike the prior statute (§ 542.335, Fla. Stat.), which applied broadly to all employees and contractors, the CHOICE Act introduces a new category of “covered employees.”

To qualify, a worker must earn more than twice the county’s average annual wage, as determined by the Florida Department of Economic Opportunity. This threshold targets executives, senior managers, and highly compensated contractors—those with access to a company’s strategic, confidential, or proprietary information.

All other workers remain governed by § 542.335, which continues to apply to general employees and independent contractors.

Stronger Non-Competes and New Garden-Leave Rules

The CHOICE Act recognizes two main types of “covered agreements”:

1.   Non-compete agreements, which restrict former employees from working for competitors within a defined geographic area and time period.

Key Updates to Florida’s Non-Compete Agreements

·         Longer duration (covered employees only): Non-compete agreements for covered employees can now last up to four years after employment ends—double the previous standard of two years.

·         Broader protection: These agreements may restrict former employees from taking on roles where they could use confidential information or client relationships from their prior employer.

·         Defined geographic area: Agreements must still specify a geographic scope, but employers no longer must justify reasonableness under the traditional §542.335 standards when the agreement qualifies as a covered agreement under the CHOICE Act.

·         Updated notice and acknowledgment requirements: Employers must provide at least seven days for employees to review the agreement before signing, advise them of their right to seek legal counsel, and include a written acknowledgment confirming access to confidential information or client relationships.

2.  Garden-leave agreements, which require employees to remain on paid leave—continuing to receive salary and benefits—for a set period before joining a competitor.

Key Updates to Florida’s Garden-Leave Agreements

• Defined notice period: The CHOICE Act introduces formal garden-leave provisions, requiring both parties to agree in advance on a notice period that can last up to four years before employment officially ends.

• Continued pay and benefits: During this period, the employer must continue paying the employee’s regular salary and benefits.

• Limited service requirement: After the first 90 days, the employee is not required to provide services unless otherwise agreed upon.

• Flexibility for other work: Employees may engage in non-work activities or even work elsewhere with employer approval. Employers may also shorten the notice period with at least 30 days’ written notice.

• Legal counsel notice: Employers must advise employees of their right to seek legal counsel and include an acknowledgment of access to confidential information for the agreement to be enforceable.

The Act expands Florida’s non-compete framework by granting employers stronger and longer-lasting protections. It allows agreements to last up to four years, presumes they are enforceable, and requires courts to issue injunctions when violations occur.

The CHOICE Act excludes healthcare practitioners from coverage and applies only to covered employees and contractors who meet the compensation threshold. All other restrictive covenants remain governed by § 542.335.

What This Means for Florida Employers

The CHOICE Act effectively creates a dual system for restrictive covenants in Florida:

• § 542.335 governs traditional employees and general contractors.

• §§ 542.41–542.45 (CHOICE Act) applies to high-earning, covered employees and contractors.

For covered individuals, agreements that follow the Act’s procedural steps enjoy stronger enforcement, longer protection periods, and faster judicial remedies.

Florida employers should act now to ensure compliance and strengthen their contracts:

• Review existing non-compete and confidentiality templates.

• Incorporate right-to-counsel disclosures and the seven-day review period.

• Add acknowledgment clauses confirming access to confidential information or client relationships.

• Assess compensation levels to determine which employees qualify as “covered.”

How Wheeler Legal Can Help

Understanding the nuances of Florida’s CHOICE Act is essential for business owners, HR leaders, and executives who rely on non-compete or garden-leave provisions.

Wheeler Legal advises Florida employers statewide on contract drafting, compliance, and enforcement strategies under the new law. In light of the CHOICE Act, we are helping clients update their agreements to ensure they remain compliant—and fully protected.

Contact Wheeler Legal to review your non-compete and employment agreements now that the CHOICE Act is in effect.

Disclaimer

This blog post is for informational purposes only and does not constitute legal advice or create an attorney-client relationship. You should consult with a licensed Florida attorney before making any legal decisions related to business purchases or letters of intent.

References:

·         Bill text / legislative history: CS/CS/CS/HB 1219 (2025) – the bill that created §§ 542.41–542.45. The Florida Senate+1; Chapter 542 - 2025 Florida Statutes - The Florida Senate 

·         GrayRobinson – “UPDATE - Florida’s CHOICE Act Becomes Law” (July 7 2025) — overview of the law, effective date, and its pro-employer stance. GrayRobinson

·         Phelps Dunnick & Blake – “Florida’s CHOICE Act Transforms Non-compete and Garden Leave Agreements” — detailed breakdown of who is covered and key changes. Phelps Solutions