Significant changes coming to Florida non-compete agreements in 2025.

May 5, 2025 | FORS | ATTORNEYS AT LAW

Florida employers should prepare for significant changes to the legal framework governing noncompete and garden leave agreements. With the anticipated signing of the Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act, the state is poised to materially expand and reshape its existing noncompete statute, Fla. Stat. § 542.335. Set to take effect on July 1, 2025, if signed into law by Governor Ron DeSantis, the CHOICE Act aims to provide employers with new tools and structures to protect client relationships and confidential information. At the same time, it introduces key exemptions—particularly for healthcare professionals—and reinforces Florida’s position as one of the most employer-friendly states in the nation.

Key Takeaways for Florida Employers

1. Covered Noncompete Agreements
The CHOICE Act will allow Florida employers to enter into noncompete agreements lasting up to four years after employment is terminated, provided certain compensation thresholds are met. Moreover, the Act would appear to give employers more robust discretion in specifying the geographic area within which competition is prohibited and, ostensibly, allow for worldwide restricted territories without requiring the employer to tailor the scope based on a legitimate business interest.

2. Garden Leave Agreements
Generally, a garden leave provision is a clause in an employment agreement that requires an employee—after resigning or being given notice of termination—to remain employed and continue receiving salary and benefits for a specified period, but without performing any actual work or accessing sensitive company information. Under the Act, Employers are authorized to include “garden leave” provisions requiring employees to provide significant advanced notice before resigning. During this period, the employee must be paid full salary and benefits. After 90 days, the employee is no longer required to perform services, but may only engage in other work with the employer's approval. This means such agreements could work to prevent subsequent employment in any industry or area, regardless of the nature of the employer's business.

3. Who Can be Subjected to Agreements Sanctioned by the Act?
The Act only applies to “covered employees”—defined as individuals "reasonably expected" to earn more than twice the annual mean wage in the county where the employer’s principal place of business is located. Yes, independent contractors are deemed to be covered employees for purpose of the law.

4. Healthcare Professionals Are Exempt
Importantly, most licensed healthcare practitioners are excluded from the Act’s coverage. This means that doctors, nurses, psychologists, and similar professionals cannot be subject to new noncompete or garden leave agreements governed by the CHOICE Act.

5. Burden Shifted to Employees
If a dispute arises, Florida courts must issue a preliminary injunction enforcing the restrictive covenant unless the employee proves, by clear and convincing evidence, that they will not use confidential information or solicit restricted clients. Employers who prevail in enforcement proceedings are entitled to recover attorneys’ fees and damages.

What Should Employers Do Now?

Employers should review and revise their employment agreements in advance of the CHOICE Act's effective date. While the new law enhances enforceability for qualifying agreements, it also requires strict compliance with technical criteria—particularly around the procedure for execution of such agreements.

At FORS | ATTORNEYS AT LAW, we help Florida businesses navigate the evolving business landscape.

This blog post is intended for informational purposes only and does not constitute legal advice. For legal guidance tailored to your specific situation, please consult with an attorney.

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