Florida’s CHOICE Act – Major Changes to Noncompete and Garden Leave Laws in 2025

In Florida, non-compete agreements work to safeguard confidential company information, such as client lists, trade secrets, and customer or vendor relationships. Florida has long stood as a state with some of the strongest and most employer-friendly non-compete laws, and a recent ruling on the Florida CHOICE Act has only strengthened these protections further.

The Florida CHOICE Act, or the Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act, works to provide employers with several key protections to ensure employee compliance. At the Law Offices of Gary A. Costales, P.A., we know that the legal jargon surrounding these new laws can be confusing, and we hope to guide you through all the new provisions so that you can utilize these laws to the benefit of your business and success.

Understanding Non-Compete Agreements in Florida

It is estimated that 11.4% of adult workers are currently operating under a non-compete agreement. These legal agreements work to restrict employees from working for competitive companies or starting their own rival business for a set period of time after leaving their original employer. In the state of Florida, these agreements fall under the governance of Section 542.335 of the Florida Statutes and require the following elements:

• A written and signed agreement between the involved parties
• The protection of a valid business interest, such as trade secrets, certain forms of training, and customer relationships
• Reasonable restrictions in duration, scope, or business, and geographic scope

Under Florida state law, employers must be able to prove that their non-compete terms are both necessary and reasonable. The courts will closely evaluate all of the above-stated elements in order to balance employee mobility with employer interests.

Changes Coming in the CHOICE Act to Be Aware Of

Coming into effect on July 1st, 2025, the new changes to the CHOICE Act will hugely impact non-compete agreements and the responsibilities and duties of both employers and employees. The new law will also deal with what is known as “garden leave,” or the period of leave that usually follows the resignation of an employee, even while they are still working or being paid during said resignation period.

The CHOICE Act also works to create two new categories of enforceable agreements. These include:

• Covered non-compete agreements. Instead of the past two years of restrictions post-employment, the new laws enacted with CHOICE now grant up to four years. This means that employers can now create non-competes lasting up to four years instead of just two. Additionally, there is no statutory geographic limit, meaning that a non-compete enacted in Florida could, theoretically, affect an employer no matter where they move.In order to qualify as a covered non-compete agreement, the document must include the following elements:
  • Counsel the employee in writing of their rights to seek legal advice from an attorney before they sign the agreement
  • Include a written acknowledgment from the employee involved that, during their employment, they will receive confidential information, trade secrets, and customer relationships.
  • The agreement will need to be presented to the employee within seven days before signing Covered non-compete agreements. Instead of the past two years of restrictions post-employment, the new laws enacted with CHOICE now grant up to four years. This means that employers can now create non-competes lasting up to four years instead of just two. Additionally, there is no statutory geographic limit, meaning that a non-compete enacted in Florida could, theoretically, affect an employer no matter where they move.

• Covered garden leave agreements. Under the CHOICE Act in Florida, covered garden leave agreements are introduced, a novel concept in state law. These agreements can require employees to give their employers advanced notice, up to four years, before leaving the job, during which time they can remain on the payroll at their base salary.This can allow employers to maintain control of certain key workers temporarily while they transition out of their potentially sensitive roles. These agreements require:
  • A notice of seven days before signing
  • Written advice in regard to seeking legal counsel
  • An official acknowledgment from the employee that they have access to customer relationships or confidential information

Why the New Laws Under the CHOICE Act Are Important

Florida has long been known as one of the most employer-friendly states. A major number of states in the country have moved away from non-compete agreements, with 8% of states already implementing a ban on these legal arrangements. The new provisions laid out in the CHOICE Act will actually allow Florida employers the following powers:

• Worldwide reach. There are no geographic caps placed on these non-compete agreements, meaning that, in theory, no matter where an employee relocated to on the globe, they would still be under the agreement for up to four years.
• Flexibility. In a garden leave agreement, employee departures are more effectively and proactively managed by the employer.
• Easier enforcement. In the event of a court case, the burden-shifting and preliminary injunctions will work in the employer’s favor.
• Extended protections. Instead of the traditional time limit of two years, under the CHOICE Act, this limit is now extended for up to four years.

As non-compete agreements become increasingly important in protecting business interests, understanding the evolving legal landscape in Florida is crucial. The CHOICE Act, effective July 1, 2025, introduces significant changes that strengthen employers’ ability to enforce these agreements, extending their duration and broadening their geographic reach. If you are an employer or employee navigating non-compete issues, it’s essential to have experienced legal guidance to ensure your rights and obligations are properly addressed. Contact the Law Office of Gary A. Costales, P.A. today to discuss your situation and receive expert advice tailored to Florida’s updated non-compete laws.

FAQs

Speak to a Florida Non-Compete Agreement Lawyer Today

If you are an employee or an employer in Florida curious about how the new CHOICE Act will affect you, reach out to the Law Offices of Gary A. Costales, P.A., and learn more about how we may be able to help.