Florida’s New CHOICE Act: What You Need to Know

Florida’s New CHOICE Act: What You Need to Know

If you live, work, or own a business in Florida, you might have heard some buzz about a new law called the CHOICE Act. It officially kicks in on July 1, 2025, and it’s important to understand, especially if you manage people in high-paying positions.

So, what is the CHOICE Act? Let’s break it down.

What Does CHOICE Stand For?

CHOICE is short for Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth.

Who Does CHOICE Affect?

It affects organizations that employ folks (employees or independent contractors) making more than twice the average wage in their Florida county. This includes professionals like tech workers, executives, consultants, and more.

What’s Changing?

1. Noncompete Agreements
In Florida, non-compete agreements are typically presumed valid, which gives employers a strong legal foundation. If properly drafted and reasonable in scope, a non-compete can prevent a former employee from working for a competitor for up to four years. However, enforceability still depends on factors like the employee’s role, the industry, and the geographic limits of the restriction.

2. Garden Leave
Ever heard of garden leave? It’s when an employer opts to pay an employee to stay home and not work for anyone else. Under the CHOICE Act, this can last up to four years, as long as the company continues to pay the employee’s salary and benefits.

3. Time to Consider
Employers must give employees at least seven days to review non-compete agreements. They must also inform employees in writing that they may talk to a lawyer.
 
4. Legal Implications
If there’s a dispute, courts are expected to side with the employer unless the employee can prove the non-compete agreement is unfair. This isn’t just “I don’t like it” unfair. They must show clear and convincing evidence.

Reasoning

The state wants to protect investments and encourage innovation. If a company spends time and money training an employee or sharing trade secrets, Florida wants to ensure the employee doesn’t take that knowledge immediately to the company’s competitors.

Bottom Line?

The CHOICE Act has implications for organizations that employ highly paid positions. Stay tuned for more updates from Landrum HR Solutions. Landrum is here to support you and provide guidance in an ever-changing employment law landscape. Whether you need assistance with recruitment, employee relations, compliance, or benefits administration, we're committed to providing the expertise and resources you need to succeed. Please contact your HR Business Partner with any questions.