The CHOICE Act (Contracts Honoring Opportunity, Investment, Confidentiality and Economic Growth Act) took effect July 1, 2025, altering how Florida non-compete agreements operate. This Florida non-compete law extends agreement durations, allows employers to introduce garden leave requirements, and establishes new income thresholds for covered employees.
Non-compete agreements restrict employees from working for competitors or starting similar businesses after leaving their current employer. These contracts protect trade secrets, customer relationships, and business investments throughout Florida’s competitive marketplace.
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What the Florida CHOICE Act Means for Non-Compete Agreements
The Florida CHOICE Act updates the rules of how non-compete agreements work for employees and independent contractors in the state. Here’s what you need to know:
- Who is affected: “Covered employees” are people who earn at least twice the median wage in their county. These workers see the biggest changes. Certain professionals, like healthcare workers, are exempt.
- Longer non-competes: For covered employees, non-compete agreements can now extend up to four years, double the previous two-year limit, giving businesses more time to protect trade secrets, client relationships, and other sensitive information.
- Garden leave: Employers can include garden leave provisions, paying employees during the restricted period to strengthen enforceability and protect the business’s confidential information and client relationships.
- Review period: You must get at least seven days to review a non-compete before signing it, so you can understand what you’re agreeing to.
- Protecting business interests: Non-competes must clearly focus on protecting the company’s important information, like trade secrets, client lists, and company goodwill.
- Independent contractors: Some contract workers are now covered, but key exceptions like healthcare providers remain.
Bottom line: These changes are the biggest updates to Florida’s non-compete rules in decades, giving employees more protections while helping businesses protect their confidential information.
Employer Obligations Under the New Florida Non-Compete Law Changes
The new Florida non-compete law in 2025 places specific responsibilities on employers who wish to enforce restrictive covenants.
Contract Revisions
Contract revisions must reflect the extended four-year duration for covered employees and incorporate mandatory garden leave provisions where applicable. Existing agreements signed before July 1, 2025, require careful review to determine whether amendments are necessary or beneficial.
Clear Language
Clear, precise language remains non-negotiable. Vague restrictions or boilerplate clauses that fail to identify specific legitimate business interests, such as particular trade secrets, defined client relationships, or documented specialized training investments, create enforcement vulnerabilities. Courts scrutinize whether restrictions directly relate to protectable interests rather than simply limiting employee mobility.
Adequate Consideration
Adequate consideration stands as a fundamental requirement under employer obligations to non-competes in Florida. New hires receive consideration through the job offer itself. Current employees need additional value: promotions, salary increases, bonuses, or access to confidential information previously unavailable. The consideration must be genuine and contemporaneous with the agreement signing. Retroactive attempts to enforce agreements lacking proper consideration typically fail judicial review, exposing businesses to litigation costs without achieving protection goals.
Understanding Legitimate Business Interests Protected by Updated Non-Competes in Florida
Florida law recognizes specific categories that qualify as legitimate business interest Florida non-competes can protect.
1. Trade Secrets
Trade secrets represent the foundation: proprietary formulas, processes, algorithms, and technical data that provide competitive advantages.
2. Confidential Business Information
Confidential business information extends beyond trade secrets to include strategic plans, pricing structures, and operational methods not generally known outside the organization.
3. Client Relationships
Client relationships constitute another protected category. Companies invest substantial resources developing customer lists, understanding client needs, and building trust. When employees gain access to these relationships through their positions, non-competes can prevent immediate exploitation of those connections.
4. Specialized Training Investments
Specialized training investments justify restrictions when employers provide substantial, extraordinary instruction beyond general industry skills. This includes:
- Proprietary methodologies unique to the business
- Advanced technical certifications funded by the employer
- Extensive mentorship programs developing specialized expertise
- Access to exclusive industry knowledge or networks
5. Company Goodwill
Company goodwill, the reputation and brand value built over time, also warrants protection. Employees in client-facing roles who become associated with the company’s identity may be restricted from leveraging that association to compete directly.The CHOICE Act maintains these traditional categories while requiring employers to demonstrate actual access to protected information.
Florida business lawyers emphasize that vague assertions of business interests no longer suffice. Documentation proving employee exposure to confidential data, specialized training records, and evidence of client relationship development now form essential components of enforceable agreements.How Federal Actions Could Intersect With Florida Non-Compete Law Changes in The Future
The
federal ban on non-competes proposed by the FTC in 2024 aimed to eliminate most restrictive covenants nationwide, citing worker mobility and market competition as primary concerns. A federal court injunction halted implementation in early 2025, leaving the rule’s future uncertain. This creates a complex landscape where Florida’s CHOICE Act operates independently while federal regulatory efforts remain pending.Businesses cannot afford to ignore federal developments. The FTC’s position signals continued scrutiny of non-compete practices at the national level. Should courts lift the injunction or Congress pass alternative legislation, state laws like Florida’s CHOICE Act could face preemption challenges or require modification to align with federal standards.
Monitor both regulatory fronts simultaneously:- Track federal court decisions on the FTC rule’s validity
- Review any Congressional proposals addressing non-compete restrictions
- Assess whether your agreements comply with both Florida’s CHOICE Act and potential federal requirements
- Prepare contingency plans for rapid contract modifications if federal law changes
The intersection of state and federal authority creates compliance challenges requiring vigilant attention. Your non-compete strategy must remain flexible enough to adapt to shifting federal priorities while meeting Florida’s specific requirements.
Practical Steps for Businesses to Comply With 2025 Florida Non-Compete Law Changes
Compliance with Florida’s new non-compete laws in 2025 requires immediate action. Review every existing employment contract to identify which employees fall under the CHOICE Act’s “covered employee” definition, those earning twice their county’s median wage. Your human resources team must flag agreements requiring updates.
Florida business attorneys provide tailored contract revisions that align with the CHOICE Act. These professionals ensure your agreements include:
- Seven-day review periods for new contracts
- Written acknowledgment of confidential information access
- Garden leave provisions for extended restrictions
- Precise language tied to legitimate business interests
Train your management team on what makes restrictions enforceable under the new standards. They need to understand income thresholds, duration limits, and the documentation required for garden leave arrangements. Avoid template agreements, each contract must reflect the specific role, compensation structure, and protectable interests relevant to that position.
FAQs (Frequently Asked Questions)
What is the CHOICE Act and how does it change Florida’s non-compete law effective July 1, 2025?
Effective July 1, 2025, Florida’s CHOICE Act updated non-compete law by defining covered employees, limiting durations, requiring garden leave, and setting notice periods to clarify agreements.
Who are considered ‘covered employees’ under the new CHOICE Act in Florida?
Under Florida’s CHOICE Act, “covered employees” are those earning at least twice the median wage in their county. Certain exemptions apply, including healthcare professionals and executives with substantial decision-making authority.
What employer obligations arise from the recent Florida non-compete law changes under the CHOICE Act?
Employers must update contracts for CHOICE Act limits and garden leave rules, use clear language to protect legitimate interests, and ensure agreements are legally enforceable.
What constitutes a legitimate business interest protected by updated non-compete agreements in Florida?
Following the CHOICE Act, restrictive covenants in Florida must protect core business interests, trade secrets, confidential information, client lists, training investments, and goodwill, and use precise language to be enforceable.
How might federal actions intersect with Florida’s recent non-compete law changes in the future?
The FTC has proposed a nationwide ban on most non-competes, but court injunctions have stalled it. Future federal rules could affect state laws like Florida’s CHOICE Act, so businesses should track federal developments while staying compliant with state provisions.
Get Expert Help With the Florida Non-Compete Law
At Battaglia, Ross, Dicus & McQuaid P.A., our business lawyers bring decades of experience to employment contract matters, helping you navigate Florida’s evolving non-compete laws with confidence. You can rely on expert guidance to draft, review, and enforce agreements that protect your business or career.
Under the CHOICE Act, you can:
- Draft non-compete agreements that comply with Florida law
- Update existing contracts to meet new statutory requirements
- Defend against challenges to restrictive covenants
- Reduce litigation risk through proactive compliance strategies
With the right legal guidance, you can avoid costly disputes and ensure your agreements are enforceable. Our attorneys stay up to date on legislative changes so you receive advice grounded in the latest standards.
Whether you’re an employer or employee, understanding your rights under the new regulations is key. You can schedule a
free consultation to review contracts, discuss your situation, and develop strategies aligned with the CHOICE Act. Protect your business interests today.