What's Happening?
The Florida legislature has enacted the Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act, which took effect on July 1, 2025. This new law significantly strengthens the enforceability of non-compete and garden leave agreements in the state. The Act aims to encourage information sharing, protect confidential data, and provide predictability for employers. It applies to certain 'covered employees' and 'covered employers,' determined by wage data in Florida counties. The Act allows non-compete agreements to last up to four years and includes provisions for garden leave agreements, where employees are paid but may be required to stay away from work. The law also makes it easier for employers to obtain injunctive relief in case of breaches, shifting the burden of proof to employees to demonstrate unenforceability.
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Why It's Important?
The CHOICE Act positions Florida as one of the most non-compete friendly states in the U.S., contrasting with other jurisdictions that have moved to limit or ban such agreements. This development is significant for businesses seeking to protect their confidential information and client relationships. Employers can now enforce longer non-compete periods and have a broader geographic scope, potentially impacting employee mobility and job market dynamics. The Act's provisions could lead to increased litigation as employees challenge the enforceability of these agreements, affecting legal practices and employment strategies in Florida.
What's Next?
Employers in Florida are advised to review and update their existing non-compete and garden leave agreements to ensure compliance with the new law. Businesses should consult with experienced employment counsel to leverage the Act's provisions effectively. As the law is implemented, there may be legal challenges and adjustments in how companies draft and enforce restrictive covenants. The broader impact on employee rights and business practices will unfold as stakeholders adapt to the new legal landscape.
Beyond the Headlines
The CHOICE Act raises ethical and legal questions about employee rights and the balance between protecting business interests and ensuring fair employment practices. The law's emphasis on confidentiality and client relationships may lead to increased scrutiny of employer practices and potential conflicts with employee freedom and career advancement. Long-term, this could influence national discussions on non-compete agreements and labor rights.
