What's Happening?
Florida has enacted the Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act, which strengthens the enforceability of non-compete and garden leave agreements. The Act, effective July 1, 2025, allows longer durations for non-compete agreements and lowers the enforcement threshold, making Florida one of the most non-compete friendly states. It applies to certain covered employees and employers, with specific wage thresholds determining coverage. The Act aims to protect confidential information and client relationships while providing predictability for businesses. Employers are encouraged to review and update agreements to comply with the new law.
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Why It's Important?
The CHOICE Act significantly alters the landscape for non-compete agreements in Florida, potentially affecting employee mobility and business practices. By enhancing enforceability, the Act may benefit employers seeking to protect proprietary information and maintain competitive advantages. However, it could also limit employees' ability to seek new opportunities, impacting workforce dynamics and talent acquisition. The law's implications may extend beyond Florida, influencing national discussions on non-compete agreements and prompting other states to reconsider their policies.
What's Next?
Employers in Florida will likely reassess their non-compete and garden leave agreements to ensure compliance with the CHOICE Act. Legal challenges may arise as employees contest the enforceability of these agreements, leading to potential court cases that could further define the Act's scope. Other states may observe Florida's approach and consider similar legislative changes, potentially sparking broader debates on the balance between business interests and employee rights.
