Florida Enacts Employer-Friendly Non-Compete Law Under the CHOICE Act

What Changed

Florida Governor Ron DeSantis signed House Bill 1219, the Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act, which took effect July 1, 2025. The law creates a new framework for non-compete and garden leave agreements that significantly strengthens employer protections beyond Florida's already employer-friendly restrictive covenant statute.

Key provisions of the CHOICE Act include:

• Non-compete duration up to four years for qualifying "covered employees" — well beyond the typical one- to two-year enforceability window under Florida's existing Section 542.335

• Garden leave agreements up to four years, during which the employer must continue paying salary and benefits; after 90 days, the employee is no longer required to perform services

• Mandatory preliminary injunctions: courts "must" preliminarily enjoin covered employees who violate their agreements — removing the discretionary standard that previously applied

• Attorney fees and costs awarded to the prevailing party

• All available monetary damages recoverable by employers

The CHOICE Act does not replace Florida's existing restrictive covenant law. Instead, it creates an additional, parallel framework that employers may elect to use for qualifying employees.

Who Is Affected

Covered employees under the CHOICE Act must meet a compensation threshold: they must earn a salary greater than twice the annual mean wage for their county. Depending on the county, this threshold currently ranges from approximately $80,000 to nearly $150,000 per year.

The law applies to both employees and individual contractors, but expressly exempts healthcare workers from coverage.

Employers of all sizes may use the CHOICE Act framework, provided the covered employee meets the compensation threshold.

Employees below the compensation threshold remain subject to Florida's existing restrictive covenant statute (Section 542.335), which generally permits non-competes of six months to two years depending on the type of restriction.

Where It Applies

Florida statewide. The law applies to employees and contractors performing work in Florida. Given Florida's status as a major employment hub — particularly in technology, finance, and professional services — the CHOICE Act has national implications for multi-state employers with Florida-based workers.

Notably, the CHOICE Act moves against the national trend: while several states have been restricting or banning non-compete agreements (California, Minnesota, and the FTC's attempted federal ban), Florida has gone in the opposite direction, creating one of the most employer-favorable non-compete regimes in the country.

When It Takes Effect

The CHOICE Act took effect July 1, 2025. It applies to agreements entered into on or after that date. Existing non-compete agreements executed before July 1, 2025 remain governed by Florida's prior restrictive covenant statute.

Employers should note the seven-day notice requirement: covered employees must receive at least seven days' notice before the offer to sign a CHOICE Act agreement expires. Employees must also provide a written acknowledgment that they have access to the employer's confidential information.

Why It Matters

The CHOICE Act represents a significant shift in the national non-compete landscape. While the FTC attempted to ban most non-competes nationwide in 2024 (a rule that was struck down in court), Florida has moved decisively in the other direction — creating the most employer-friendly non-compete framework in the United States.

For employers, the practical impact is substantial:

• Stronger retention tool: Four-year non-competes with mandatory injunctive relief give employers meaningful leverage to protect trade secrets, client relationships, and competitive advantages

• Garden leave as a planning mechanism: The garden leave provision allows employers to manage executive transitions with continued compensation, reducing litigation risk

• Litigation advantages: Mandatory preliminary injunctions and fee-shifting tilt the enforcement calculus heavily toward employers

For employees, the law raises concerns about workforce mobility and bargaining power, particularly in industries where confidential information is broadly defined.

Multi-state employers should carefully evaluate whether to adopt CHOICE Act agreements for their Florida-based high-earning employees, balancing the stronger protections against the potential impact on recruiting and retention.

The Humareso Take

This is a landmark piece of legislation that every employer with operations in Florida needs to understand. The CHOICE Act does not just tweak the rules — it creates an entirely new tier of non-compete enforceability that has no real equivalent in any other state. If you have key employees in Florida earning above the county threshold, you now have a powerful tool available. But powerful tools require careful handling: a poorly drafted CHOICE Act agreement can create more problems than it solves, and the garden leave obligation means real ongoing salary exposure. We recommend a deliberate, role-by-role assessment rather than a blanket rollout. This one is worth getting right.

Recommended Action Steps

1. Determine which employees qualify as "covered employees" by comparing their salaries to twice the annual mean wage for their county in Florida.

2. Evaluate your current restrictive covenant agreements for Florida-based employees and assess whether transitioning qualifying employees to CHOICE Act agreements strengthens your competitive protections.

3. Work with legal counsel to draft compliant CHOICE Act agreements that include the required seven-day notice period, written acknowledgment of confidential information access, and clearly defined geographic scope.

4. Assess garden leave cost exposure by modeling the salary and benefits obligation for each covered employee over the potential notice period.

5. Train HR and management on the differences between the CHOICE Act framework and Florida's existing restrictive covenant statute to ensure the correct agreement type is used for each employee.

6. Contact your Humareso representative to discuss how the CHOICE Act fits into your broader talent strategy and restrictive covenant program.