In stark contrast to many state movements reducing the effectiveness of non-compete agreements, Florida made the CHOICE to move in a different direction. As of July 1, 2025, Florida has enacted the Contracts Honoring Opportunity, Investment, Confidentiality and Economic Growth Act (the CHOICE Act) now codified at Sections 542.41-542.45, Florida Statutes. This law represents a major shift in how certain restrictive covenants in employment agreements—specifically non-compete and garden leave agreements—can be drafted and enforced against certain employees.

Legislative intent

The Florida Legislature made clear the purpose of the CHOICE Act is to strengthen contractual protection for employers investing in key personnel. The Act emphasizes the importance of enforcing “strong legal protections” in agreements involving confidential information, training and business development. It also reflects Florida’s broader policy goal of promoting economic investments in Florida by providing predictability and enforceability in employment relationships.

Who is covered?

The CHOICE Act applies to any “covered employee,” which is defined as “an employee or individual contractor who earns or is reasonably expected to earn a salary greater than twice the annual mean wage” of the relevant county. For employers that maintain their principal place of business in Florida, the relevant county is the county in which the principal place of business is located. For employers that do not maintain their principal place of business in Florida, the relevant county is the county in which the covered employee resides.

Notably, the CHOICE Act specifically excludes healthcare practitioners, including physicians, nurses, and similar professionals licensed under Section 456.001, Florida Statutes.

Enforceable agreements & procedural framework

The CHOICE Act strengthens the enforceability of two types of restrictive covenants: garden leave and non-compete agreement.

A garden leave agreement is an agreement in which:

  • the covered employee and employer agree to a period of up to four years advance notice before resignation or termination of the covered employee’s position
  • the employer agrees to continue paying, for the duration of the notice period, the covered employee’s base salary and benefits received in the month immediately preceding notice of resignation or termination

While the employer is obligated to continue providing the covered employee’s salary and benefits throughout the notice period, it is not required to provide discretionary incentive compensation or benefits.

The second type of CHOICE Act agreement, the non-compete agreement, is an agreement in which, for a period of up to four years, the covered employee agrees not to assume a position with another employer located in a specified geographic area (including self-employment) where:

  • the covered employee would provide services similar to those provided to the previous employer during the three years preceding the non-compete period
  • it is reasonably likely that the covered employee would use the confidential information or customer relationships of the previous employer

Procedural framework

In order to obtain the enhanced protection and presumptions of validity that the CHOICE Act provides to garden leave and non-competes, employers must follow strict procedural steps.

An employer must first advise the employee in writing of their right to seek counsel before execution of the agreement and the covered employee must acknowledge in writing receipt of confidential information or customer relationships. The employer must also provide a copy of the proposed garden leave or non-compete agreement to the covered employee at least seven days prior to the expiration of the offer of employment or offer to enter into the agreement.

Additionally, garden leave agreements must include specified language providing that:

  • after the first 90 days of the notice period, the covered employee does not have to provide services to the employer
  • the covered employee may engage in nonwork activities at any time of the day during the remainder of the notice period
  • the covered employee may obtain a new job, with express consent of the employer, for the remainder of the notice period
  • the notice period may be reduced if the employer provides 30 days advance notice of such reduction

Enforcement

The CHOICE Act also alters the legal standards for enforcement. If an employer moves to enforce an agreement covered under the Act, the court is now required to issue a preliminary injunction barring the covered employee from working or being hired in violation of the agreement. The injunction can only be lifted if, by clear and convincing evidence, the employee or their new employer establishes that:

  • the employee will not perform similar work or use protected information or relationships
  • the employer failed to pay the required salary or benefits and the employee gave the employer a reasonable chance to cure the failure
  • as relevant to non-compete agreements, the prospective employer is not engaged in a similar business activity within the restricted area during the term of the agreement

Additionally, prevailing employers are entitled to monetary damages and attorneys’ fees.

Why the CHOICE Act matters

With the CHOICE Act, Florida has solidified itself as one of the most employer-friendly states for enforcing non-compete and garden leave agreements involving highly compensated individuals. While the law provides a clear, pro-enforcement framework, employers must ensure they have first met the defined salary thresholds and procedural requirements.

Suggested next steps

Employers seeking to obtain the protection of the CHOICE Act should identify employees and individual contractors that meet the applicable compensation thresholds and consider amendment to existing agreements to meet the Act’s requirements. Employers should also update their template agreements and policies to ensure compliance with the Act’s requirements.