Florida’s CHOICE Act, signed into law on July 3, 2025, updates rules for noncompete and garden leave agreements. The law gives employers tools to protect trade secrets, confidential information and customer relationships. It also sets clear rules for employees about their rights. Both employers and employees benefit from knowing these changes.
What the CHOICE Act means for noncompete and garden leave agreements
The CHOICE Act introduces two types of agreements: covered noncompete agreements and covered garden leave agreements. These apply to high-earning employees and contractors who access confidential business information or customer lists. Key points include:
- Extended enforceability: Noncompete agreements can last up to four years for qualifying employees.
- Garden leave agreements: Employees may need to give notice before leaving. They may stay on payroll and have temporary limits on working for competitors.
- Presumption of enforceability: Courts are more likely to uphold these agreements. Employees must challenge them if they believe they are unfair.
A worker with access to sensitive client data or proprietary processes may be under a covered agreement. This helps both employers and employees understand their responsibilities.
How employers can align agreements with the CHOICE Act
Employers should review and update existing agreements to follow the new law. Key steps include:
- Give agreements in advance and allow employees to get legal advice
- Clearly define who has access to confidential information and customer relationships
- Make sure agreements meet compensation rules and other legal requirements
What employees should know before signing agreements
Employees should know how these agreements may affect their careers. Key points include:
- Noncompete or garden leave agreements may limit job choices.
- Compensation and the length of garden leave should be clear.
- Employees must challenge the enforceability if they think it is unfair.
Employees may benefit from talking to an experienced employment lawyer. This ensures they fully understand their rights before signing.
Adapting to Florida’s updated noncompete rules
The CHOICE Act makes rules for noncompete and garden leave agreements clear. Reviewing agreements and getting legal guidance helps employers manage contracts. It also helps employees make informed career choices. Knowing these changes helps both sides adjust to Florida’s updated employment law confidently.