By Alexander Penalta, Esq.
The Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act (the “CHOICE Act”) went into effect July 1, 2025. This law governs certain post-employment and post-engagement restrictive covenants, primarily noncompete agreements in Florida.
The CHOICE Act is intended to balance two competing interests:
- Protecting a company’s legitimate business interests (such as trade secrets, confidential information, and client relationships), and
- Ensuring that only certain high-compensation workers can be bound by post-termination noncompete agreements.
KEY FEATURES OF THE CHOICE ACT
1. Who Can Be Bound by a “Covered Noncompete Agreement”
- The agreement must be with a “covered employee”, defined as:
- A person reasonably expected to earn at least twice the annual mean wage for the county where they work, based on the most recent Bureau of Labor Statistics data.
- For example, in Taylor County, FL (2024 data: $48,639 mean wage), the CHOICE Act threshold is $97,278/year.
- This threshold is based on annualized compensation, not just actual short-term earnings.
- Example: If you hire a consultant at $100/hr, their annualized pay (if working 40 hrs/week) is $208,000, which exceeds the threshold even if the project is initially just a few weeks long.
2. Reasonable Expectation Standard
- The Act allows enforcement if the person is reasonably expected to meet the threshold based on the pay rate and anticipated role, even if they do not actually work for a full year.
- This is important for short-term or project-based contracts that could lead to longer-term engagements.
3. Reasonableness Requirements
To be enforceable, a “covered noncompete agreement” must:
- Protect legitimate business interests (trade secrets, confidential information, customer relationships, goodwill).
- Be reasonable in time, scope, and geography.
- Clearly define what activities are restricted and in which geographic area.
4. Procedural Safeguards
- The worker must be given at least 7 calendar days to review the agreement before signing.
- The agreement must advise the individual to seek independent legal counsel.
- The restrictions must be in writing and signed by both parties.
5. Enforcement Advantages Under the CHOICE Act
- If a violation is alleged, the Act provides for presumptive preliminary injunctive relief (making it easier to get a court order stopping the breach).
- A prevailing party can recover damages, attorney’s fees, and court costs.
6. What the CHOICE Act Does Not Do
- It does not limit your ability to use non-solicitation or non-circumvention clauses that protect client relationships.
- It does not prevent using Florida Statute § 542.335 to enforce restrictive covenants for workers who do not meet the CHOICE Act’s “covered employee” definition.
III. PRACTICAL BUSINESS TAKEAWAYS
- Run the Numbers – Before relying on the CHOICE Act, calculate the annualized compensation for the role. If it’s twice the county mean wage or higher, the Act can apply.
- Document the Expectation – Even for short-term contracts, state in writing that the rate and role are expected to meet the annualized threshold.
- Dual Enforceability – Draft restrictive covenants so they are enforceable under the CHOICE Act if applicable and under Fla. Stat. § 542.335 if not.
- Follow the Procedures – Give 7 days for review, advise legal counsel, and make the terms specific and reasonable.
- Be Realistic – The Act is new and untested in court. Precedent will take years to develop, and judicial interpretation can shift.
The CHOICE Act is a powerful new tool for Florida businesses but only if applied correctly. It is most effective for high-compensation roles where you can clearly document the need to protect your investment in client relationships and confidential information. Until courts interpret the statute, using a dual-enforceability approach provides the safest protection for your agreements
