Florida just enacted a new law that seals its status as the most enforcement-friendly state in the country for non-compete and garden leave agreements. The “Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act” passed both the Florida House and Senate in April, and Governor DeSantis allowed it to become law on July 3 by not vetoing the measure. The Act doesn’t amend any current statutes, but instead provides more certainty to employers looking to enforce certain non-compete agreements and agreements offering “garden leave” (a period of time where an employee is not required to perform any work but is still paid their salary and benefits in return for not accepting employment elsewhere). Here is what employers should know about the CHOICE Act and three steps you can take to adjust to his new era.
Overview of the CHOICE Act
While many federal and state regulatory efforts seek to curb non-compete agreements, the CHOICE Act goes the other direction and creates a presumption that “covered” non-compete agreements and garden leave provisions are enforceable and do not violate public policy. Importantly, the law requires courts to issue an injunction unless the former employee or poaching employer can prove the new employment will not result in unfair competition.
Who is covered?
The Act defines a “covered employee” as any employee or contractor who works primarily in Florida or works for an employer with their principal place of...
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