Florida’s New CHOICE Act: What Businesses Need to Know About Non-Competes

For years, Florida businesses have relied on non-compete agreements to protect customer relationships, confidential information, and investments in their workforce. But the rules surrounding these agreements have changed significantly.

Florida’s Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act created a new statutory framework for certain non-compete and garden leave agreements. The law became part of Florida’s statutes in 2025 and is now codified in Sections 542.41 through 542.45 of the Florida Statutes.

For business owners, executives, and companies that depend on protecting valuable employees and confidential business information, understanding the new law is important. A non-compete agreement that once seemed straightforward may now require a much closer look.

What Is the Florida CHOICE Act?

The CHOICE Act establishes specific rules for certain covered non-compete agreements and covered garden leave agreements.

The law applies to qualifying employees and independent contractors who meet a specified compensation threshold. Among other requirements, a covered employee generally must earn, or be reasonably expected to earn, more than twice the annual mean wage for the applicable Florida county. The law also limits a covered non-compete agreement to a period of no more than four years.

That does not mean every non-compete in Florida is automatically governed by the CHOICE Act. Whether an agreement qualifies depends on the specific language of the contract, the parties involved, the employee’s compensation, and other statutory requirements.

How Does the CHOICE Act Change Florida Non-Compete Agreements?

One of the most significant aspects of the new law is that qualifying covered non-compete agreements are expressly addressed as enforceable agreements rather than being treated as prohibited restraints of trade under Florida’s antitrust provisions, provided the statutory requirements are satisfied.

The law also establishes specific requirements concerning notice and the employee’s acknowledgment of certain circumstances surrounding the agreement. For example, a covered employee must be advised in writing of the right to seek legal counsel before signing a covered non-compete agreement. The agreement must also include certain provisions concerning confidential information or customer relationships.

These details matter. A non-compete should not simply be copied from an old employment contract and reused without considering whether it complies with the current law.

What Are Florida Garden Leave Agreements?

The CHOICE Act also addresses garden leave agreements, which operate differently from traditional non-competes. Under a covered garden leave agreement, an employee may remain employed and continue receiving compensation while being relieved of work responsibilities. During that period, the employee agrees not to take other employment without the employer’s permission.

For businesses, this can provide another contractual mechanism for protecting sensitive information and customer relationships when an employee leaves.

Can a Florida Court Enforce a Non-Compete?

Potentially, yes, but the agreement must fall within the statutory framework. The CHOICE Act establishes specific enforcement provisions for covered agreements, including circumstances involving alleged breaches. The statute also addresses preliminary injunctions and other remedies available to employers seeking to enforce qualifying agreements.

That makes the wording of the agreement particularly important. When a business is dealing with a departing executive, salesperson, manager, or other key employee, the difference between an enforceable restriction and an ineffective one can come down to the contract’s language and whether the statutory requirements were followed.

Should Florida Businesses Review Their Existing Non-Compete Agreements?

Yes, a change in the law is a good reason to review the contracts your company already uses. Business owners should consider whether their existing employment agreements, executive agreements, confidentiality provisions, non-solicitation provisions, and restrictive covenants still accomplish what the business needs while complying with Florida law.

This is especially important for companies whose value depends heavily on customer relationships, confidential information, proprietary processes, trade secrets, or highly compensated employees. A contract that was drafted under an earlier legal framework should not automatically be assumed to work the same way under the CHOICE Act.

What Should Business Owners Do Now?

Rather than waiting until an employee leaves and a dispute develops, businesses can review their agreements proactively.

A Florida business attorney can examine the company’s existing restrictive covenants, determine whether the agreements fall within the CHOICE Act, identify potential enforcement issues, and help structure future employment agreements around the company’s actual business interests.

The CHOICE Act represents an important development in Florida employment contracts and non-compete law. For businesses, understanding the law before a dispute arises can be far less complicated than trying to fix a poorly drafted agreement after an employee has already left.

At Ayala Law, we work with businesses on contracts, business disputes, and litigation involving commercial relationships. 

If your company uses non-compete agreements or other restrictive covenants, please don’t hesitate to contact one of our experienced attorneys at 305-570-2208.

You can also contact our team directly at: arianna@ayalalawpa.com                   

Schedule a case evaluation online here.

Watch our video breakdown on Florida’s new CHOICE Act here.

[The opinions in this blog are not intended to be legal advice. You should consult with an attorney about the particulars of your case].