What is the Status of Non-Compete Agreements in Florida?
Non-compete agreements are a type of restrictive covenant that often favor employers. These agreements, or clauses in employment contracts, limit an employee’s ability to leave their current employer and perform similar work for a related employer in a nearby geographic area. While non-compete agreements must be limited in scope in order to be enforceable, they can significantly limit an employee’s ability to find a job that best suits their needs, and many non-compete agreements ultimately include limitations that are too broad to be lawful. In 2024, the Federal Trade Commission (FTC) issued a ban on non-compete agreements nationwide, but the FTC ultimately could not enforce that ban following a federal court’s decision.
Some states have expressly limited or banned non-compete agreements on a state basis, but Florida is not among those states. In fact, according to a recent article in Fortune, new legislation in the state of Florida actually “would make it easier for employers to impose noncompete agreements on their workers, including lower-level staffers, and create challenges for employees who try to challenge these agreements in court.” What should you know about this legislation? Our Palm Beach Gardens employment law attorneys can provide you with more details.
What You Should Know About the Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act
The CHOICE Act was passed by the Florida legislature in spring 2024, and commentators expect that Florida Governor Ron DeSantis will sign the bill. Once the bill is signed, it will take effect as of July 1, 2025. By many accounts, the CHOICE Act will significantly limit employee rights in the state, including the ability for employees to actually have a choice when it comes to leaving one employer for another. According to University of Florida professor Rachel Arnow-Richman, the result of the law “will be fewer opportunities for workers, reduced growth for businesses, and less innovation across the state.”
These are the primary components of the law:
- Double the time period for certain non-compete agreements;
- Establish a presumption that non-compete agreements are enforceable, even when they extend beyond a two-year time window (currently, longer time restrictions in non-compete agreements in Florida are typically considered to be unenforceable); and
- Require court injunctions to prevent employees from violating non-compete agreements.
These changes would not apply to all workers at a business, but to employees and independent contractors earning a wage in a particular range. It will be especially important for existing workers and for those seeking new jobs with employment contracts containing non-compete clauses to understand whether they will be subject to the changes in the new law (assuming it is signed into law). Existing employees should anticipate that employers may soon attempt to modify any existing non-compete agreements to reflect the new law in their favor, and workers accepting new jobs should be aware of the law and how the expansion of non-compete clauses in favor of employers could limit them in subsequent employment.
Contact a Palm Beach Gardens Contracts and Non-Compete Agreements Attorney for Assistance
Do you have questions about an existing non-compete agreement or concerns about the enforceability of a non-compete agreement? You should seek advice from one of the experienced Palm Beach Gardens contracts and non-compete agreements lawyers at Sconzo Law Office as soon as you can. Contact us today for more information.
Sources:
fortune.com/2025/05/09/a-new-florida-bill-about-non-compete-agreements-could-mean-big-changes-to-the-employment-landscape/
flsenate.gov/Session/Bill/2025/1219/BillText/er/PDF
tampabay.com/opinion/2025/05/29/desantis-should-veto-choice-act-its-bad-business-column/
