Effective July 1, 2025, the Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (“CHOICE”) Act became law in Florida.
Already one of the most employer-friendly states in the country for the enforcement of restrictive covenant agreements, the CHOICE Act expands upon Florida’s existing statutory scheme to create even greater flexibility and enhanced protections for the enforcement of restrictive covenants if certain conditions are met, while not superseding Florida’s already existing—and business friendly—non-competition statute.
Florida Statute 542.335 already sets forth longstanding parameters for the enforcement of restrictive covenant agreements in the state, which are still in effect despite the passage of the CHOICE Act.
The clarity and direct nature of Florida Statute 542.335 has long-been a help to employers in crafting and then navigating restrictive covenant disputes in Florida. Below are certain key presumptions and provisions of the still-in-effect noncompete statute.
Legitimate Business Interests
Statute 542.335 permits restrictive-covenant agreements provided that such agreements are reasonable in terms of time, geographic area, and business scope. The person seeking enforcement must plead and prove that the restrictive covenant is justified by one or more legitimate business interests, such as (i) trade secrets, (ii) confidential business...
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