Labor & Employment Law Daily Wrap Up, EXPERT INSIGHTS—Expansive Florida noncompete bill becomes law without governor's signature, (Jul 25, 2025)
Organizations Mentioned:Ford & Harrison
By Edward Carlstedt and Sara K. Finnigan of Ford & Harrison LLP
Real World Impact: Governor Ron DeSantis has allowed Florida's expansive noncompete bill to become law without his signature.
As discussed in our May 19, 2025 Alert, the Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act significantly expands the enforceability of noncompete agreements in Florida. The law addresses both garden leave agreements and noncompete agreements. With regard to noncompete agreements, the law expands the permissible duration of noncompete agreements from two years to a maximum of four years and contains no geographic scope limitation. Thus, noncompete agreements that comply with the CHOICE Act can last two years longer and can extend to employees who move out of Florida. The law's salary requirement means it will not apply to lower wage workers (employees or contractors who do not earn a salary, excluding benefits or discretionary compensation, greater than twice the annual mean wage of the county where the covered employer has its principal place of business, or the county where the employee resides if the covered employer's principal place of business is not in Florida), and it contains a specific exclusion for healthcare practitioners.
The CHOICE Act also permits a covered employer that believes an employee has violated a noncompete to apply for a preliminary injunction, which a court must grant. Such an injunction can only be dissolved if the employee or hiring employer proves by clear and convincing evidence based on nonconfidential information that: the employee will not perform similar work during the restricted period or use confidential information or interfere with customer relationships; the covered employer failed to pay the salary or benefits required under a covered garden leave agreement, or failed to provide consideration for a covered noncompete agreement; or the subsequent employer is not engaged in, or preparing to engage in, a similar business as the covered employer within the restricted geographic area.
Please see our prior Alert for a full discussion of the new law's provisions.
The Bottom Line
The new law is effective immediately and makes it easier for covered employers to enforce noncompete and garden leave agreements that comply with the CHOICE Act's requirements. Agreements that do not meet the new law's requirements will still be analyzed and potentially enforceable under the existing statutory scheme set forth in Florida Statute §542.335. Employers should review their existing noncompete agreements and consult with experienced employment law counsel to determine how to address current and future agreements.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Edward Carlstedt and Sara K. Finnigan
Ford & Harrison LLP
271 17th Street, NW 271 17th Street, NW
Suite 1900
Atlanta
30363
United States
Tel.: +1 404 888 3800
E-mail: mtilley@fordharrison.com
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Attorneys: (Ford & Harrison).
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