What to Know About Florida’s CHOICE Act
Effective July 1, the Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act has positioned Florida as arguably the most employer-friendly state in the country for enforcing noncompete and garden leave agreements.
What Changed?
Florida has long favored the enforcement of reasonable noncompetes, but the CHOICE Act dramatically expands what is presumed enforceable. Unlike the growing national trend toward limiting restrictive covenants through profession-specific bans, notice requirements, or income thresholds, Florida is moving in the opposite direction. Although the CHOICE Act does include a salary threshold, it otherwise strengthens employer protections and shifts the burden of proof onto employees.
Previously, employers had to prove that a restrictive covenant was reasonable in scope and necessary to protect legitimate business interests. Under the CHOICE Act, courts must now presume that qualifying noncompete and garden leave clauses are enforceable — unless the employee can prove that enforcement would not result in unfair competition. The law mandates injunctive relief for employers unless this burden is met.
The Florida Legislature justified this shift by emphasizing the state’s interest in encouraging investment in employee training and information-sharing — protections that are not sufficiently covered by non-solicitation or confidentiality agreements.
Who Is Covered?
- Covered employee: Someone earning more than twice the average annual wage in the Florida county where the employer is based (or where the employee resides, if the employer is out-of-state). This excludes bonuses, commissions, and other discretionary or variable income.
- Covered employer: Any employer with a covered employee, except healthcare practitioners.
Note: The Act does not apply to healthcare workers or standalone non-solicitation and confidentiality agreements.
Covered Noncompete Agreements
A noncompete agreement falls under the CHOICE Act if it is a written contract between a covered employer and a covered employee and prohibits the employee from:
- Providing similar services to another employer as they did during the past three years.
- Engaging in employment where it’s reasonably likely they’d use confidential information or customer relationships from their former employer.
To be enforceable, the agreement must meet the following conditions:
- The employee must receive written notice of their right to seek legal counsel before signing.
- The employee must acknowledge in writing they will gain access to confidential information or customer relationships.
- The agreement must be provided at least seven days before the job offer expires (or before the deadline to sign, for current employees).
The CHOICE Act represents a stark departure from national trends and reinforces Florida’s pro-business stance. For employers, it offers greater predictability and enforceability. For employees, it raises the bar to challenge noncompete restrictions and underscores the importance of understanding rights before signing.
Learn More About Noncompete Agreements
The noncompete agreement landscape is changing. While many states are trying to do away with them altogether, Florida is bucking the trend and becoming more pro-business.
Whether you are an employee or employer, Orlando noncompete agreement lawyer B.F. Godfrey from Godfrey Legal can help you understand your contract and ensure there are protections for both parties. Schedule a consultation today. Fill out the online form or call (407) 890-0023.
Source:
natlawreview.com/article/floridas-choice-act-expands-protections-employers-noncompete-and-garden-leave
