Squire Patton Boggs Summer Associate Daniel Doherty details how new legislation in Florida will impact employers’ use of garden leave and noncompete agreements in the Sunshine State.
On April 24, 2025, Florida lawmakers passed business-friendly legislation that impacts Florida’s regulation of noncompete and garden leave agreements and expands employer enforcement power for such agreements. The bill creates the Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (“CHOICE”) Act, which governs two types of agreements: (1) covered garden leave agreements and (2) covered noncompete agreements. Both types of agreements protect the confidentiality of employer information and client relationships, but differ as to when the protection applies; covered garden leave agreements apply while an employee remains employed with the employer, whereas covered noncompete agreements apply after an employee has left employment. Under the CHOICE Act, there is a presumption that covered noncompete and garden leave agreements with a duration of up to four years are enforceable so long as certain technical requirements are followed. The bill, awaiting Governor Ron DeSantis’s signature, is set to take effect on July 1, 2025.
The new legislation applies to certain high-earning employees and their employers, specifically, “covered employees” and “covered employers.” A “covered employer” is any employer who employs or engages with a...
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