Florida’s CHOICE ACT: A New Era for Non-Compete and Garden Leave Agreements
On April 24, 2025, the Florida House and Senate passed the Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (“CHOICE”) Act. The CHOICE Act is expected to take effect on July 1, 2025, introducing the most sweeping changes to Florida’s restrictive covenant framework seen in years.
The CHOICE Act applies to employees and independent contractors who earn more than twice the average annual wage for the Florida county where either (i) the employer has its principal place of business, or (ii) the worker resides, if the employer is based outside of Florida. The income threshold for coverage under the Act varies by county, ranging from approximately $80,000 to nearly $150,000, depending on local average wages.
One of the most notable changes introduced by the CHOICE Act is that it allows non-compete agreements for covered workers to extend up to four years after the end of employment or a contract. This is a significant change from current Florida law, which presumes non-compete periods over two years to be generally unreasonable. To be enforceable under the Act, a non-compete agreement must: (i) be in writing and clearly inform the worker of their right to seek legal counsel, providing at least seven days for review before signing; (ii) include a signed acknowledgment from the worker confirming they will have access to confidential information or significant client relationships during their employment or contract; and (iii) specify that the non-compete period will be reduced day-for-day by any nonworking portion of a concurrent garden leave period.
The CHOICE Act also formalizes certain garden leave provisions, allowing employers to require workers to provide up to four years of advance notice before ending their employment or contract. During this period, the worker must remain on payroll at their base salary with benefits but is not eligible for discretionary pay. Employers may require the employee to continue working for the first ninety days. After that, the worker may engage in non-work activities and, with the employer’s permission, begin working elsewhere. To be valid under the CHOICE Act, and similar to non-compete agreements, a garden leave agreement must: (i) be in writing and advise the worker of their right to consult with legal counsel, with a minimum seven-day review period before signing; (ii) contain a signed acknowledgment confirming the worker will have access to confidential information or significant client relationships; and (iii) permit the worker, after the initial ninety days, to stop performing services and engage in non-work or alternate employment, subject to employer consent.
Licensed healthcare practitioners, as defined in Section 456.001 of the Florida Statutes, are specifically excluded from the CHOICE Act. However, this does not mean non-compete agreements involving healthcare workers are unenforceable. Those agreements are still governed by Florida’s existing restrictive covenant laws, with one key exception: under Section 542.336, non-competes are prohibited between physicians who practice the same medical specialty and are employed or contracted by the same entity within the same county.
In summary, the CHOICE Act will generally strengthen the ability of employers to enforce valid non-compete and garden leave agreements. Courts are now required to issue preliminary injunctions to enforce such agreements, unless the worker can prove by clear and convincing evidence that the agreement is unenforceable or unnecessary to prevent unfair competition. Further, if an employee or contractor commits “gross misconduct,” the employer may reduce pay or benefits, or take other appropriate actions without violating the agreement. Employers who prevail in enforcement actions may also recover damages and attorneys’ fees.
Whether you’re an employer looking to protect your business or an employee concerned about your contractual obligations, it’s important to understand who is covered under the CHOICE Act and how it may impact your rights and obligations. The attorneys at Johnson, Newlon & DeCort are here to help both employers and employees navigate the legal complexities introduced by the CHOICE Act.
