Are You Affected by Florida's Choice Act: Non-Compete Statute?

NEW FLORIDA NON-COMPETE STATUTE

July 9, 2025|Business Law, Non-Compete Agreements

Are you aware of Florida's Choice Act: Non-Compete Statute? The Florida Legislature enacted the Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act (CHOICE or “the Act”), which became effective on July 1, 2025. This statute introduces significant changes regarding non-compete and garden leave agreements in Florida. Notably, the Act does not apply to health care practitioners.

Does this Non-Compete Statute affect you? It depends. Are you a covered employee? A covered employee earns more than twice the annual mean wage in the employee's Florida county. on how much you make at the company and if you signed a Non-Compete Agreement or Garden Leave Agreement.

Key Provisions for Employers

The Act grants employers several new rights and remedies in enforcing restrictive covenants. Employers can obtain injunctive relief against individuals who violate covered agreements. Restrictive covenants are now considered “fully enforceable” under the Act. Courts are required to issue preliminary injunctions against individuals found to be in violation of a covered agreement. Furthermore, courts cannot dissolve or modify an injunction unless the individual proves—by clear and convincing evidence—that they will neither provide similar services to a new employer nor use confidential information in breach of the agreement.

Additional provisions include the potential for employers to seek damages and reduce compensation if a covered individual commits gross misconduct against the employer. The Act also ensures that prevailing parties are entitled to recover attorney fees. Other restrictive covenants continue to be governed by Florida’s preexisting statutory and common law.

Scope of Application

The Act is limited to employment relationships where the employee earns at least twice the annual mean wage of the Florida county in which the employer’s principal place of business is located. If the principal place of business is outside Florida, the relevant wage threshold is based on the Florida county where the employee resides.

Types of Restrictive Covenants Covered

The Act applies to two types of restrictive covenants:

• Covered Noncompete Agreements: The Covered Noncompete Agreement prohibits an employee from working for a competitor for up to four years after employment termination and within a specified geographic area.

• Covered Garden Leave Agreements: The Covered Garden Leave Agreement requires the employer to compensate the employee regardless of attendance or output. During the garden leave period (up to four years), the employee cannot engage in other employment unless the employer consents.

Employer Requirements for Valid Agreements

To ensure enforceability of covered agreements under the Act, employers must meet specific conditions:

1. Provide employees with at least seven days to review the agreement.

2. Inform employees of their right to seek legal counsel.

3. Obtain written acknowledgment from the employee stating they do or will receive confidential information or customer relationships during their employment.

FTC Attempts to Ban Non-competes

The FTC tried to ban Non-competes. The FTC Announces Rule Banning Non-competes. 

Unfortunately, on September 5, 2025, the FTC took steps to dismiss their appeal in the Fifth Circuit.

The Noncompete Rule is not in effect and it is not enforceable. On August 20, 2024, a district court issued an order stopping the FTC from enforcing the rule. The FTC appealed that decision on October 18, 2024. On September 5, 2025, the FTC took steps to dismiss its appeal in the Fifth Circuit.