Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act
Modified: July 8, 2025
Article
Employment Agreements
Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act
pp. 3–16; §542.41, §542.42, §542.43, §542.44, and §542.45, F.S.
Creates the Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act to protect confidential information and client relationships by creating two types of agreements: covered garden leave agreements and covered noncompete agreements. The agreements are intended to protect the confidentiality of information and client relationships for up to four years, either while the covered employee remains employed (covered garden leave agreement) or after the covered employee has left employment (covered noncompete agreement). The bill creates a framework for such agreements and provides that such agreements do not violate public policy or antitrust laws when used under certain narrow conditions. (See the bill for more details on the framework for creating these “covered” agreements, which includes that certain disclosures be provided to covered employees during certain timeframes and that covered employees acknowledge receipt of certain information, along with requirements for specified language to be included in these agreements.)
The CHOICE Act is intended to serve a legitimate state interest by enforcing strong legal protections in contracts between employers and contracted personnel, which encourage optimal levels of information sharing, training, and development. It is also intended to provide predictability in the enforcement of these contracts, which will hopefully encourage investment in the state. Specifically, the CHOICE Act is intended to strengthen the enforceability of noncompete agreements and garden leave agreements for certain high-earning employees and independent contractors.
The term “garden leave” generally refers to agreements in which the worker remains employed and receives the same total annual compensation and benefits, but their access to co-workers and company facilities is restricted. Such agreements are not considered to be “post-employment restrictions.” As such, when an employee subject to a garden leave agreement resigns or is terminated from his or her employment, the employer must continue to pay the employee during the garden leave period. However, the employer is not obligated to assign work, and the employee is prohibited from working for competitors. Garden leave agreements may be particularly useful in industries that rely on proprietary information and data, or in which an employee’s departure will expose the business to substantial risk.
Defines “covered” employees or independent contractors as those who are expected to earn a salary (which does not include benefits, bonuses, or commissions) greater than twice the average wage in the county where the business is based (or where the worker lives if the business is out of state).
In most Florida counties, this means the Act will apply to employees earning approximately $100,000 or more per year. Healthcare practitioners are specifically excluded from the Act.
Provides that if a company uses a properly drafted noncompete or garden leave agreement, Florida courts must issue a preliminary injunction to stop a former employee from working for a competitor unless the employee can convince the court otherwise.
This is a major change from current Florida law, which places the burden on employers to prove a breach.
Allows for restriction periods of up to four years.
This is a major departure from current law, where Florida courts often find agreements over two years unreasonable.
If a business relies on noncompete agreements to protect confidential information, client relationships, or competitive advantages, the CHOICE Act gives that business a clearer and stronger path to enforce those agreements—but only if they’re drafted to meet the Act’s specific requirements. To take full advantage of the provisions of the CHOICE Act, businesses will need to update or rewrite their agreements to match the new legal standards, and FAIA recommends that these new agreements be drafted and/or reviewed by an attorney. Otherwise, Florida’s current law on noncompete agreements remains in full force and effect, and it will still apply to agreements that do not meet the definitions of a “covered noncompete agreement” and a “covered garden leave agreement.” (See §542.335, F.S., for Florida’s current law on noncompete agreements).
Effective date: July 1, 2025
Chapter No. 2025-213, LOF