While the feds and blue states are working overtime to dismantle non-competes, Florida is moving in the exact opposite direction. On April 24, the Legislature passed the Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act—and it’s expected to be signed by Governor DeSantis.
The law takes effect July 1, 2025, and if you do business in Florida, it’s time to get your house in order. Here’s what you need to know:
🔍 What the CHOICE Act Does
Unlike recent efforts in D.C. and other states to curtail non-competes, the CHOICE Act creates a presumption of enforceability for certain restrictive covenants—including non-compete agreements.
Courts MUST issue preliminary injunctions against a breaching “covered former employee” unless they or their new employer can prove the new job doesn’t create unfair competition.
That’s a huge shift—and one that tilts the playing field dramatically in favor of Florida-based businesses.
🧑💼 Who Is a “Covered” Employee?
Only agreements with “covered employees” qualify for the CHOICE Act’s legal presumptions. A “covered employee” is someone who:
- Works primarily in Floridaor works for a company with its principal place of business in Florida; and
- Earns more than 2x the average wageof either:
- The Florida county where the business is based, or
- The Florida county where the employee lives (if the business is out-of-state).
Critically:
- Bonuses and commissions don’t counttoward the salary threshold.
- Healthcare practitionersare excluded altogether.
📄 What Must Be in the Non-Compete Agreement?
To benefit from the CHOICE Act’s pro-enforcement presumptions, the agreement must:
- Inform the employeein writing of their right to seek legal advice—and give them at least 7 days to review
- Include a written acknowledgment that the employee will have access toconfidential information or customer relationships.
- Limit the non-compete to roles that aresimilar to those performed within the prior 3 years of employment—or where use of sensitive info is reasonably likely.
- Cap the restriction period atno more than 4 years.
- If the employee is on “garden leave,” reduce the non-compete termday-for-day for each nonworking day.
💥 And here’s the kicker: There are no geographic limitations. You can restrict competition globally—so long as the role and time period are covered.
⚖️ What Happens If an Employee Breaches?
Under the CHOICE Act, Florida courts must issue an injunction unless:
- The employee or new employer proves—by clear and convincing, non-confidential evidence—that the role won’t create unfair competition;
- The employer failed to pay agreed compensation (after being given a reasonable chance to fix it); or
- The new employer isn’t in the same or similar business within the restricted area.
⚠️ Conflicts with Other States
What if the employee lives in California or another state that outright bans non-competes?
If the employer is Florida-based, and the agreement is governed by Florida law, the CHOICE Act says it trumps conflicting state law. Translation: expect forum battles, legal challenges, and some very expensive litigation.
✅ What Employers Should Do Now
- Audit all current agreementsto see if they meet the CHOICE Act criteria. This is especially important for executives and key sales employees.
- Update agreementsfor higher earners—especially those with access to sensitive info or key client relationships.
- Shore up your confidentiality policiesand trade secret protections.
Bottom line: The CHOICE Act gives Florida employers the strongest tool in the country to protect their talent, trade secrets, and customer relationships. But the protections are only as good as the paper they’re written on.
📅 Deadline to prepare: July 1, 2025. Don’t wait.