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Florida’s CHOICE Act Prompts Covenant Overhauls as Federal Courts Split on Enforcement

Employers must overhaul agreements to align with the law’s expanded non-compete durations under a default injunction mechanism requiring employees to meet a clear-and-convincing standard.

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Overview

  • The law doubles non-compete periods to four years, removes geographic scope limits, extends coverage to out-of-state employees and formally authorizes garden leave agreements.
  • The CHOICE Act makes preliminary injunctions presumptive default relief, forcing employees to prove by clear-and-convincing evidence why covenants should be dissolved.
  • Low-wage workers and licensed health practitioners are exempt, with the law applying only to employees whose earnings exceed county-defined wage thresholds.
  • Federal courts remain divided on applying the statute’s presumption of irreparable harm, creating uncertainty over its enforceability in federal venues.
  • Since July 1, employers have been auditing and revising existing restrictive covenants to ensure compliance and maximize protective measures under the new statute.