Florida has taken a decisive step in reshaping the employment landscape with the passage of the CHOICE Act short for Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth. Set to take effect on July 1, 2025, the law significantly expands the enforceability of non-compete and garden leave agreements. At a time when many states and federal agencies are moving to restrict such covenants, Florida is charting its own course, prioritizing employer protections and economic predictability.

What Is the CHOICE Act?

The CHOICE Act introduces two new types of enforceable agreements: covered non-compete agreements and covered garden leave provisions. These mechanisms are designed to help businesses protect proprietary information, retain top talent, and ensure smoother transitions during employee departures. Notably, the Act does not modify existing non-compete laws under Florida Statute 542.335 or trade secret laws under Florida Statute 688.001, but rather supplements them with additional, powerful tools.

Who Qualifies as a Covered Employee?

To be considered a “covered employee” under the CHOICE Act, an individual must meet one of the following criteria:

Earn at least twice the average annual wage in the Florida county where they work or reside (if their employer is based out of state). This amount could range from approximately $80,000 to $150,000 depending on location.
Have access to confidential business information or substantial customer relationships.

Importantly, licensed medical professionals, as defined under Section 456.001, Florida Statutes, are explicitly excluded from the scope of the CHOICE Act. However, other state laws regarding medical practice non-competes remain applicable.

Which Employers Are Covered?

The CHOICE Act applies to any business entity that employs or engages a covered employee or contractor. The employer must either be based in Florida or engage employees who primarily work in Florida. This provision extends coverage to a wide range of companies, including those operating remotely or with hybrid arrangements.

Understanding Covered Non-Compete Agreements

The CHOICE Act permits non-compete agreements that last up to four years following the end of employment – double the typical two-year presumption under current Florida law. These agreements must be:

In writing and presented at least seven days before execution.
Accompanied by a written notice informing the employee of their right to consult with legal counsel.
Inclusive of a clause acknowledging the receipt of confidential information or meaningful customer relationships during employment.
Structured such that any non-compete period is reduced day-for-day by overlapping garden leave periods.

Covered Garden Leave Agreements: Redefined

Under the CHOICE Act, garden leave provisions require employees to give extended advance notice before ending their employment up to four years. During this period:

The employer must continue paying the employee’s base salary and benefits.
Employees are not obligated to work beyond the first 90 days.
Employees may engage in other employment activities only with the current employer’s permission.

This structure allows businesses to retain strategic flexibility while compensating transitioning employees.

How Enforcement Works

One of the most striking features of the CHOICE Act is its powerful enforcement framework. Courts are required to issue preliminary injunctions to enforce valid non-compete and garden leave agreements unless the employee proves, by clear and convincing evidence, that:

They are not performing similar duties or using confidential information.
The employer failed to uphold agreed compensation terms, despite having a reasonable chance to correct the lapse.
The new employer is not a competitor and has no plans to compete in the relevant geographic area.

Additionally, if an employee engages in gross misconduct, the employer may reduce salary or benefits or take “appropriate action” without breaching the agreement.

Employee Rights and Obligations

While the CHOICE Act strengthens employer rights, it also introduces safeguards for employees:

Employers must give at least seven days for contract review.
Employees must be notified of their right to seek independent legal counsel.
Workers cannot be forced to perform duties after 90 days of garden leave.

These measures ensure a balance between employer protection and employee autonomy.

Key Differences from Existing Law

The CHOICE Act differs from Florida’s existing laws in several ways:

The non-compete period can now extend up to four years.
Garden leave provisions are formally recognized and enforceable.
Employees have greater protections regarding notice and legal review.

Furthermore, unlike the FTC’s proposed national ban on non-competes, the CHOICE Act leans into contractual freedom and the protection of business interests.

Strategic Benefits for Employers

Employers stand to gain significantly from this new legal framework:

Enhanced trade secret and client relationship protections.
Greater flexibility in workforce transitions.
Streamlined enforcement via mandatory injunctions.

With clearer guidelines, businesses can draft more robust employment contracts with reduced litigation risk.

Considerations for Employees

Employees, especially those in high-skill or executive roles, should:

Carefully review all non-compete or garden leave clauses before signing.
Understand the potential long-term impact of extended notice periods.
Leverage garden leave as a financial buffer during career transitions.

Legal counsel is strongly recommended to ensure full understanding of contractual obligations.

Comparing to Other State and Federal Laws

While many states, such as California, ban non-compete agreements altogether, Florida is taking a different route. The CHOICE Act embraces a business-forward stance. In contrast, the FTC is considering nationwide restrictions on non-competes, which—if passed—could conflict with or preempt state-level laws. Legal challenges may arise, but as of now, Florida is forging ahead.

Compliance Strategies for Employers

To ensure compliance with the CHOICE Act before July 1, 2025, employers should:

Audit all existing non-compete and garden leave agreements.
Revise contracts to meet the seven-day review and counsel notice requirements.
Train HR and legal teams to understand the nuances of the new law.
Build in contract flexibility for “gross misconduct” and enforcement terms.

Acting early will help mitigate risk and avoid costly legal disputes.

How Lumalex Law Can Assist

At Lumalex Law, we help both employers and employees navigate complex employment law changes. Our attorneys can:

Draft CHOICE Act-compliant agreements.
Review and revise current employment contracts.
Provide strategic counsel to reduce enforcement risks and maximize protection.

We partner with our clients to build sustainable legal strategies that align with their goals.

Prepare Now for July 1, 2025

The CHOICE Act is a game-changer for Florida employers and a landmark shift in how restrictive covenants are treated. With enhanced legal tools and well-defined employee rights, the Act creates a more stable, transparent employment environment. Employers and employees alike should take proactive steps to understand and comply with the new framework before it becomes law.

Frequently Asked Questions

What is considered a competitor under the CHOICE Act?

A competitor is any business engaged in similar activities within the same geographic area as outlined in the agreement. This definition can be broad, so clarity in the contract is crucial.

Does the CHOICE Act override federal labor laws?

No, it supplements state law. However, future federal legislation like the FTC’s proposed non-compete ban could create conflicts.

How long can a garden leave last?

Up to four years, although it can be shortened with at least 30 days’ written notice to the employee.

Can employees negotiate CHOICE Act terms?

Yes, employees retain the right to negotiate agreement terms, especially regarding compensation and duration.

What happens if a covered employee relocates out of Florida?

Enforceability may depend on whether the agreement includes jurisdictional clauses and how other states treat such contracts.