Florida lawmakers recently passed the Florida Contracts Honoring Opportunity, Investment, Confidentiality and Economic Growth (CHOICE) Act (the “Act”), which would create a presumption that covered non-compete and garden leave agreements are enforceable. If it is approved by Governor Ron DeSantis, or allowed to become law without his signature, the Act will take effect on July 1, 2025.

The Act bucks the trend of states (e.g., Virginia and Wyoming) passing laws limiting the enforceability of restrictive covenants. According to the Act’s “Legislative findings,” the Legislature was motivated to pass the measure due to its findings that:

• “strong legal protections in contracts between employers and contracted personnel which encourage optimal levels of information sharing and training and development” are a proper and legitimate state interest;
• “alternative means of protecting confidential information and client relationships, such as nondisclosure agreements, fixed-duration term contracts, and nonsolicitation clauses in employment contracts, are inadequate to protect against the significant global risks faced by companies in this state”; and
• “predictability in the enforcement of [non-compete] contracts … encourages investment in this state.”

Currently in Florida, to enforce a non-compete, an employer must show that it is: (i) contained in a written agreement signed by the employee, (ii) justified by a “legitimate business interest,” and (iii) reasonably necessary to protect...

Read Full Story: https://news.google.com/rss/articles/CBMiqgFBVV95cUxQSlJkWW0wNWh5M1NYLWk3THN3...