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Wednesday, November 26, 2025

Florida CHOICE Act Overhauls Non-Compete Laws for Employers - The National Law Review

The Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act makes sweeping changes to how restrictive covenants, such as non-compete agreements, are handled in the state. While many states are tightening restrictions on these agreements, Florida is moving in the opposite direction. Effective July 1, 2025, the CHOICE Act increases employers’ ability to enforce non-compete agreements and introduces new legal tools to protect businesses.

What Does the CHOICE Act Do?

The CHOICE Act strengthens the protections afforded to employers and their ability to enforce restrictive covenant agreements. Currently, non-compete agreements are governed by Florida Statute § 542.335, which requires employers to prove:

  • The existence of a written agreement signed by the employee;
  • A legitimate business reason that is necessary to protect the employer; and
  • Reasonable limitations on the time (typically 2 years), geographic scope, and scope of business restrictions contained within the agreement.

The Act expands these provisions and instead places the burden on the employee to show the agreement is unenforceable. Under the Act, covered garden leave agreements and covered non-compete agreements are presumed to be enforceable, and courts must issue a preliminary injunction to enjoin a covered employee from violating a restrictive covenant.

Who is Covered by the CHOICE Act?

The CHOICE Act applies to both “covered employees” and “covered employers.”

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