Florida has long stood apart from states that restrict or ban non-compete agreements. With the passage of the CHOICE Act — the Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act — Florida has taken another significant step in that direction. This law solidifies Florida as one of the most employer-friendly jurisdictions in the nation.
What Is the CHOICE Act?
The CHOICE Act, effective July 1, 2025, and codified at Florida Statutes §§ 542.41–542.45, creates a second, stronger enforcement framework for non-compete agreements involving high-earning employees. Importantly, it does not replace Florida Statute §542.335 — the two now operate as a dual system. The CHOICE Act is an additional option available to employers for certain employees.
Who Is Covered?
The CHOICE Act applies to 'covered employees' — defined as employees who earn more than twice the county's average annual wage. This threshold targets executives, senior managers, and other high-earning professionals who have access to valuable confidential information, business relationships, and trade secrets.
Healthcare practitioners are explicitly excluded from coverage under the CHOICE Act.
Key Provisions
Extended Non-Compete Duration
Under the CHOICE Act, the maximum duration for a non-compete agreement with a covered employee is extended to 4 years — up from 2 years under §542.335. This gives Florida employers significantly broader protection for their investment in developing key talent.
Employee Disclosure Requirements
Before a covered employee signs a CHOICE Act non-compete, employers must:
- –Provide a 7-day review period before the agreement is signed
- –Advise the employee of their right to seek independent legal counsel
- –Include a written acknowledgment confirming the employee's access to confidential information and the legitimate business interests being protected
Garden-Leave Agreements
The CHOICE Act formalizes garden-leave arrangements in Florida law. Under a garden-leave agreement, the employee remains on the employer's payroll — receiving their full salary and benefits — during the non-compete period, up to 4 years. After 90 days, the employee is not required to perform any services unless both parties agree otherwise. The employer may shorten the garden-leave period by providing 30 days' written notice.
A Dual System: CHOICE Act vs. §542.335
It's critical for employers to understand that the CHOICE Act and Florida Statute §542.335 now operate in parallel. §542.335 continues to govern non-compete agreements for general employees. The CHOICE Act creates a separate, more powerful framework for covered high-earning employees.
Employers should evaluate which framework applies — or could apply — to each employee and ensure their non-compete templates are updated accordingly.
What Should Florida Employers Do Now?
- –Review existing non-compete agreements to determine which framework applies
- –Update template agreements to include CHOICE Act disclosures for covered employees
- –Ensure garden-leave provisions are clearly drafted if you intend to use them
- –Consult with a Florida business attorney before presenting any new non-compete agreements
Wheeler Legal advises Florida employers on non-compete compliance, employment agreements, and related matters. Contact us to schedule a consultation.