Significant changes coming to Florida non-compete agrements in 2025.

May 5, 2025 | FORS | ATTORNEYS AT LAW

‍Florida employers should prepare for significant changes in the enforceability of noncompete and garden leave agreements with the anticipated signing of the Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act. This legislation, set to take effect July 1, 2025 if signed into law by Governor Ron DeSantis, aims to provide greater certainty and structure to restrictive covenants in employment contracts—while also carving out major exceptions for healthcare professionals. Nevertheless, with the passage of this bill, Florida aims to solidy its position as one of the most employer-friendly states in this context.

Key Takeaways for Florida Employers

1. Noncompete Agreements
The CHOICE Act will allow Florida employers to enter into noncompete agreements lasting up to four years, provided they are narrowly tailored and meet certain wage thresholds. These agreements may limit a former employee's ability to compete within a specified geographic area and industry—so long as the employer demonstrates a legitimate business interest, such as protecting confidential information or maintaining client relationships.

2. Garden Leave Periods Up to Four Years
Employers may now include “garden leave” provisions requiring employees to provide up to four years' notice before resigning. During this period, the employee must be paid full salary and benefits. After 90 days, the employee is no longer required to perform services, but may only engage in other work with employer approval. A garden leave provision is a clause in an employment agreement that requires an employee—after resigning or being given notice of termination—to remain employed and continue receiving salary and benefits for a specified period, but without performing any actual work or accessing sensitive company information.

3. Who Qualifies?
The Act only applies to “covered employees”—defined as individuals "reasonably expected" to earn more than twice the annual mean wage in the county here the employer’s principal place of business is located. Yes, independent contractors are deemed to be covered employees for purpose of the law.

4. Healthcare Professionals Are Exempt
Importantly, most licensed healthcare practitioners are excluded from the Act’s coverage. This means that doctors, nurses, psychologists, and similar professionals cannot be subject to new noncompete or garden leave agreements governed by the CHOICE Act.

5. Enforcement Tools for Employers
If a dispute arises, Florida courts must issue a preliminary injunction enforcing the restrictive covenant unless the employee proves, by clear and convincing evidence, that they will not use confidential information or solicit restricted clients. Employers who prevail in enforcement proceedings are entitled to recover attorneys’ fees and damages.

What Should Employers Do Now?

Employers should review and revise their employment agreements in advance of the CHOICE Act's effective date. While the new law enhances enforceability for qualifying agreements, it also requires strict compliance with technical criteria—particularly around the procedure for execution of such agreements.

At FORS | ATTORNEYS AT LAW, we help Florida businesses navigate the evolving business landscape.

This blog post is intended for informational purposes only and does not constitute legal advice. For legal guidance tailored to your specific situation, please consult with an attorney.

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