2025 has been a busy year for new state legislation on employee restrictive covenant agreements, particularly in the healthcare sector. While several states have pushed forward new legislation restricting employee restrictive covenant agreements, Florida bucks the trend.

This patchwork of state-specific laws creates a complex landscape for employers, making it increasingly challenging to navigate and comply with the varying regulations across different states. For businesses operating in multiple states, this can mean significant legal and operational hurdles, as they must tailor their employment contracts and practices to meet the unique requirements of each jurisdiction. Despite these challenges, understanding and adapting to these changes is crucial for maintaining compliance and protecting business interests.

In Depth

While most states have moved to further limit noncompete agreements, the Sunshine State took a clear step in the opposite direction when the Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act (dubbed the “CHOICE Act”) went into effect on July 1, 2025.

The CHOICE Act applies to employees who earn a salary that is the greater of either twice the annual median wage (i) of the Florida county in which the employer has its principal place of business or (ii) where the employee or contractor resides, if the employer’s principal place of business is outside of Florida. (Note: the CHOICE Act does not apply to “health care...

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