If you’re a Florida business owner or manager employing high-earning professionals, the Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act, or CHOICE Act (CS/CS/CS/HB 1219, 2025), is about to change how you protect your company’s confidential information and client relationships. This bill, which has passed the Florida Legislature and awaits the Governor’s signature, will add a new section to Chapter 542 (Part II, ss. 542.41–542.45, Florida Statutes) if signed into law. If the Governor approves it, the CHOICE Act will take effect on July 1, 2025, introducing “covered garden leave agreements” and “covered noncompete agreements” for well-paid workers. Compared to the existing law (s. 542.335, Florida Statutes), these changes give you stronger tools to safeguard your business. Here’s a clear guide to what’s new, how it differs from current rules, and what it means for your company, helping you navigate these updates with ease.
What Is the CHOICE Act?
The CHOICE Act creates a framework for employment contracts with high earners—those earning more than twice the average wage in their county. It focuses on two types of agreements: garden leave agreements, which require extended notice periods before a worker leaves, and noncompete agreements, which limit their ability to work for competitors after leaving. These rules apply only to “covered employees” and “covered employers.” Contracts that don’t meet these criteria remain under s. 542.335, giving you different options depending on your workforce.
Who Is a Covered Employee?
A covered employee is an employee or independent contractor earning over twice the annual mean wage in the county where your business is headquartered (or their county of residence if your company is outside Florida). For example, if the average wage in your county is $50,000, they must earn over $100,000. Healthcare practitioners, like doctors or nurses, are excluded. This focus on high earners means the Act applies to your top talent, not lower-wage staff.
Key Changes to Noncompete Law
The CHOICE Act introduces new tools and clearer rules compared to s. 542.335, making it easier to protect your business’s sensitive information and client connections. Here’s what’s changing.
1. Garden Leave Agreements: Managing Transitions with Confidence
A garden leave agreement requires a high earner to provide up to four years of advance notice before leaving their role. In return, you commit to paying their salary and maintaining benefits (such as health insurance) at the same level as the month before the notice period began. After the first 90 days, you’re not obligated to assign them work—they can pursue personal activities or work for another employer with your approval. You can also shorten the notice period by providing 30 days’ written notice.
Unlike s. 542.335, which doesn’t address garden leave, the CHOICE Act explicitly supports these agreements, stating they don’t unlawfully restrict competition. This gives you a structured way to manage departures and keep sensitive information secure while retaining the worker on your payroll.
2. Noncompete Agreements: Stronger Post-Employment Protections
Noncompete agreements under the CHOICE Act prevent high earners from joining a competitor for up to four years after leaving, within a specific geographic area, if they would perform similar work or use your confidential information or client relationships. If a worker is also under a garden leave agreement, any time they’re not working during the notice period reduces the noncompete duration day-for-day. For example, six months of nonworking time during garden leave shortens the noncompete by six months.
In contrast, s. 542.335 typically limits employee noncompetes to six months to two years and requires you to demonstrate the restriction’s necessity. The CHOICE Act presumes these longer, four-year noncompetes are valid if they comply with its requirements, reducing your legal effort.
3. Streamlined Court Enforcement
If you believe a high earner has violated a garden leave or noncompete agreement, you can request a court injunction to prevent them from working elsewhere. The court must issue this injunction promptly, and the worker must provide “clear and convincing” evidence—a high standard—that they’re not performing similar work, using your confidential information, or joining a competitor in the same industry. This shifts the burden to the worker, unlike s. 542.335, where you must first justify the restriction’s reasonableness.
If a worker engages in “gross misconduct” (serious misbehavior), you may reduce their salary or benefits during these periods without violating the agreement. If you prevail in court, you can recover all financial losses, and the prevailing party—either you or the worker—is entitled to reasonable attorney fees and costs. Under s. 542.335, fee awards depend on the contract or court discretion, making the CHOICE Act’s guarantee more predictable.
4. Mandatory Notice Periods
You must provide high earners with the proposed agreement at least seven days before they need to accept a job offer or sign the contract. You’re also required to advise them in writing to consult an attorney. This ensures they have time to review the terms, a requirement not present in s. 542.335. While this adds a step to your hiring process, it helps prevent future disputes.
5. Simplified Protection of Confidential Information
The CHOICE Act assumes a worker has access to your confidential information or client relationships if they sign a written acknowledgment. This presumption simplifies enforcement compared to s. 542.335, where you must prove you’re protecting a legitimate business interest, such as trade secrets or client lists.
6. Handling Other Contracts
Contracts that don’t qualify as covered garden leave or noncompete agreements—such as those for lower-wage workers or agreements not meeting the Act’s criteria—are governed by s. 542.335, which imposes stricter standards. The CHOICE Act also updates other sections of Chapter 542 to align with the new framework, designating the older sections as the “Florida Antitrust Act of 1980” for clarity.
Implications for Your Business
If the Governor signs the CHOICE Act, it will take effect on July 1, 2025, offering powerful tools to protect your business when managing high-earning professionals. Here’s how it impacts you, along with considerations to guide your approach.
Benefits for Employers
- Clearer Legal Support: The Act explicitly states that covered garden leave and noncompete agreements don’t unlawfully restrict competition, increasing the likelihood courts will enforce them compared to s. 542.335’s case-by-case review.
- Reduced Legal Burden: Automatic injunctions and the presumption of confidential information access mean you face fewer hurdles proving your case in court.
- Comprehensive Remedies: You can recover all financial losses and attorney fees if you win a case, deterring violations and offsetting legal costs.
- Operational Flexibility: Options to shorten garden leave periods or reduce compensation for gross misconduct allow you to manage costs and address serious issues.
Considerations to Keep in Mind
- Limited Scope: The Act applies only to high earners, so you’ll rely on s. 542.335 for other workers, which requires more evidence and shorter restriction periods.
- Financial Commitment: Paying salaries and benefits during garden leave, potentially for years, can be costly, even if the worker isn’t performing duties. You’ll need to weigh this against the benefits of restricting their mobility.
- Administrative Steps: The seven-day notice and attorney-consultation requirement add tasks to your hiring or contract process, requiring careful planning.
- Pending Approval: The bill awaits the Governor’s signature. If not signed, these changes won’t take effect, and s. 542.335 will remain the governing law.
Final Thoughts
The CHOICE Act, if signed into law on July 1, 2025, will give Florida employers like you a stronger hand when managing high-earning talent. It makes garden leave and noncompete agreements easier to enforce, with clear financial protections and less legal back-and-forth. However, it only applies to high earners, and the costs of garden leave need careful consideration. For other workers, s. 542.335 remains the standard, with stricter requirements. With the bill awaiting the Governor’s signature, now is the time to review your employment contracts for high earners and prepare for these potential changes. Consulting with legal experts can help you craft agreements that maximize the CHOICE Act’s benefits, ensuring your business stays protected in Florida’s competitive landscape.