Florida's CHOICE Act Tightens Non-Compete Rules, Sets National Precedent

A new bill in Florida, known as the CHOICE Act, is poised to bring substantial changes to the state's non-compete agreement landscape, with potential ripple effects across the nation. The legislation is designed to bolster employer protections by establishing new benchmarks for non-compete and garden leave agreements. Under the CHOICE Act, employers will have the authority to restrict employees who meet specific financial and compensation criteria from engaging in competitive activities, thereby strengthening the enforcement of restrictive covenants and safeguarding business interests.

The CHOICE Act introduces several pivotal changes. Firstly, it mandates that courts enforce restrictive covenants more rigorously, leading to stricter penalties for employees who breach non-compete agreements. Secondly, the act empowers employers to implement garden leave provisions, which require employees to remain inactive during the non-compete period. This measure aims to prevent employees from leveraging their knowledge and skills to benefit competitors immediately after leaving their current employment.

The implications of the CHOICE Act are not confined to Florida. Employers in other states may need to adapt their practices to align with the new standards set by Florida, particularly if they have operations or employees in the state. This could catalyze a nationwide shift in how non-compete agreements are managed, as other states may emulate Florida's approach to fortifying employer protections.

The CHOICE Act is part of a larger trend of legislative changes affecting non-compete agreements. In the first four months of 2025, several significant legislative changes, judicial decisions, and agency actions at both the state and federal levels have influenced non-compete agreements. These changes underscore a growing acknowledgment of the role of non-compete agreements in protecting business interests and curbing unfair competition.

The CHOICE Act is anticipated to have a profound impact on the employment landscape in Florida and potentially beyond. Employers will need to review their non-compete agreements to ensure compliance with the new standards set by the act. Employees, meanwhile, will need to exercise greater caution regarding their actions during and after their employment, as the penalties for violating non-compete agreements will be more severe. Overall, the CHOICE Act signifies a notable shift in the power dynamics between employers and employees, with employers gaining more control over their workforce.