Florida’s CHOICE Act could significantly expand noncompete covenants

In a stark departure from the national trend toward limiting non-competition agreements, the Florida Legislature passed a bill that would significantly expand employers’ ability to enforce non-competition agreements with employees. The “CHOICE Act”, S.B. 1219, would expand upon Florida’s current noncompete statute, Fla. Stat. 542.335 and, among other changes:

  • Permit non-competition agreements of up to 4 years for high earning employees or independent contractors (i.e., those who make more than twice the mean income of the county in Florida either
    1. where the recipient resides, if employed by an out-of-state company, or
    2. where the employer is headquartered, if employed by a Florida company);
  • Shift the burden to justify the reasonableness of a non-competition restriction from the employer to the employee; and
  • Mandate automatic preliminary injunctions to enforce non-competition restrictions against employees once an employer seeks enforcement in court, which injunctions may only be modified if the employee establishes certain facts prescribed in the CHOICE Act by clear and convincing evidence.

In order to be enforceable under the CHOICE Act, employers would need to follow certain requirements, including providing a 7-day review period and notifying recipients of their right to legal counsel.

Some additional exceptions will apply, including a carve-out for certain medical practitioners. However, if passed, the CHOICE Act would make Florida one of the most employer-friendly jurisdictions in the U.S. on restrictive covenants.

As of now, the CHOICE Act (S.B. 1219) awaits approval from the governor (or permission to become law without the governor’s signature), having passed through the Legislature. The bill is expected to take effect on July 1, 2025.
The bill also makes sweeping changes to garden leave arrangements in Florida. D+G will continue to monitor any developments in this space.