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Florida Legislature Pushes for Tougher Noncompete Restrictions

By  |  June 22, 2025

The Florida Legislature has recently approved the Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act, introducing significant changes to employment contract provisions, including garden leave and noncompete agreements. According to a statement from legislative sources, the bill allows these agreements to be enforceable through injunctive relief, with the law set to take effect on July 1, 2025, pending the signature of Governor Ron DeSantis.

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    The legislation targets specific individuals based on income thresholds, focusing primarily on those who earn or are expected to earn more than twice the average annual wage in their Florida county or county of residence if employed out of state. Per a statement, healthcare practitioners are expressly excluded from these provisions. Employers covered under the law include any business or individual employing or contracting with such high-earning employees.

    One of the key innovations in the bill is the formal recognition of garden leave agreements. Under this framework, a “covered garden leave agreement” is a written contract where the employee agrees not to resign during a notice period of up to four years, while the employer continues salary and benefits payments during this time. According to a statement, these agreements must include written advisement for the employee to seek legal counsel before signing, and the employee must acknowledge receiving confidential information or customer relationships.

    The bill specifies several conditions for garden leave agreements to be enforceable. After the initial 90 days of the notice period, employees are not obligated to perform work but may participate in nonwork activities or, with permission, accept employment elsewhere during the remaining term. The employer can also shorten the notice period with at least 30 days’ advance written notice.

    In addition to garden leave, the CHOICE Act enacts substantial modifications to noncompete agreements. Currently allowed in Florida, noncompete agreements will now be enforceable for up to four years and within a defined geographic scope for covered employees. This marks a departure from previous standards, where noncompetes exceeding two years were typically deemed unreasonable. Per a statement, the new provisions notably strengthen employer protections in this area.

    If signed into law, these measures aim to enhance protections for businesses while placing clearer guidelines on employee contract terms.

    Source: Best Lawyer