Florida's new Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act, also known as the CHOICE Act, made it easier for employers to enforce legitimate business interests with covered garden leave agreements and covered noncompete agreements. The two most significant changes are:

1. Protections can be extended for up to four years; and
2. Courts are required to issue preliminary injunctions to enforce the protections unless the employee or contractor can demonstrate, by clear and convincing evidence, that the agreement is unenforceable or unnecessary to prevent unfair competition.

The CHOICE Act applies to covered employees or independent contractors earning more than twice the annual mean wage in the Florida county where either (i) the covered employer’s principal place of business is located or (ii) where the covered individual resides if the covered employer’s business is located outside of Florida. It does not cover healthcare practitioners.

Garden leave agreements are alternatives to standard noncompete agreements where an employee is compensated for the time they must remain out of the workforce. These types of agreements are gaining more popularity and recognition in state legislatures.

Under the CHOICE Act, employers require covered employees or contractors to provide advance notice — up to four years—before employment or contract termination. During this notice period, employees remain on the employer’s payroll at their base salary and...

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