On July 3, 2025, a new law in Florida went into effect that makes it easier for businesses and employers to enforce non-compete agreements.
Known as the CHOICE Act (Contracts Honoring Opportunity, Investment, Confidentiality and Economic Growth), the new law makes Florida an even friendlier environment for businesses to use and rely upon the protections of non-compete agreements with their current and former employees.
Florida already has a reputation for being business-friendly when it comes to non-compete enforcement. Nonetheless, this new law goes even further to help employers enforce such agreements in the event of disputes about their validity or enforceability.
For example, former employees often challenge and dispute whether an employer is seeking to enforce a non-compete to protect an actual “legitimate business interest” (as generally required by law) or simply trying to keep an employee from having another job for some impermissible purpose. This new law provides employers with a specific means to simplify and advance their position in such disputes. In particular, if certain terms are included and certain steps are followed by the employer in connection with the drafting and execution of non-compete agreements, the new law will consider such agreements fully enforceable and will shift the burden onto the employee to prove it should not otherwise be enforced. This burden shifting can provide a significant advantage to employers in such legal proceedings.
However, the law has its limits and only applies to certain employees who receive a certain amount of salary or wages. And, as noted above, for the law to apply, employers must—among other things—have in place specific terms in such agreements and follow certain notice procedures when having employees sign them.
Do not hesitate to reach out to a member of our Florida office to review and update your agreements or otherwise discuss this new law and how it may impact your business.
