May 7, 2025

The Sunshine State’s Ironclad Shield: Why Florida Is Becoming the Fort Knox for Business Innovation Protection

Florida is rapidly emerging as the premier jurisdiction for protecting valuable business assets through robust non-compete agreements and restrictive covenants. The Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act is currently awaiting Governor DeSantis’s signature and is expected to become effective on July 1, 2025. This groundbreaking legislation will arm businesses with unprecedented legal weapons to defend their legitimate business interests, trade secrets, confidential information, and client relationships against employee departures that could otherwise drain companies of their competitive advantages overnight. 

How the CHOICE Act Enhances Florida’s Existing Non-Compete Laws 

Florida’s current restrictive covenant statute will remain in effect, but the CHOICE Act creates a new category of restrictive covenants with significantly enhanced enforcement mechanisms and reduced defenses for departing employees and their future employers. This landmark Florida employment law represents a significant advancement in how businesses can protect their most valuable assets through enforceable non-solicitation and non-compete agreements. 

Key Advantages of Florida’s CHOICE Act for Non-Compete Enforcement 

Under the CHOICE Act, Florida courts must issue injunctions to enforce qualifying agreements, effectively guaranteeing enforcement for compliant employers. The legislation flips traditional burdens of proof, requiring employees or their new employers to demonstrate that no violation occurred or that the agreement cannot be enforced. 

Perhaps most significantly, employees face the daunting challenge of disproving violations under a “clear and convincing evidence” standard—substantially more difficult than the typical “preponderance of evidence” threshold in civil litigation. The Act also doubles the maximum enforcement period from two years to four years, providing employers with extended protection against competitive threats from former employees. 

Industry Impact: From Hospitality to Manufacturing to Finance 

The CHOICE Act will transform how businesses across all sectors protect their legitimate business interests. Organizations can more effectively safeguard patient relationships and referral sources. Financial services firms gain stronger protections for client portfolios and investment strategies. Manufacturing companies can better secure proprietary processes and supply chain relationships. Professional services firms will have enhanced tools to prevent client poaching and preserve specialized knowledge. 

Case Example: Tech Startups and the CHOICE Act 

As Timothy Shields, Partner and Business Unit Leader of Kelley Kronenberg’s Technology, Data Privacy, and Cybersecurity Division explains, the impact on technology ventures illustrates how powerfully this legislation can work for employers in any industry. 

“This is a big deal for many startups that often have non-compete concerns for both incoming and outgoing talent,” notes Shields. Tech startups frequently encounter complex non-compete situations from multiple angles. When recruiting experienced developers or executives from established competitors, startups must navigate existing restrictive covenants while ensuring access to specialized knowledge. Simultaneously, as these ventures scale, protecting their own intellectual capital becomes increasingly important, particularly when founding team members with deep institutional knowledge consider departures. 

Just as tech firms can protect their proprietary algorithms and emerging technologies, manufacturers can shield production processes, and financial advisors can safeguard client portfolios. The CHOICE Act provides all Florida-based businesses with unprecedented tools to protect their most valuable assets through enforceable restrictive covenants. 

Qualifying for CHOICE Act Protection: Key Requirements 

For employers to effectively leverage the CHOICE Act’s enhanced protections for their business interests, they must carefully understand and meet two fundamental qualifying criteria. The first critical requirement centers on employee compensation: 

Salary Threshold Requirements 

The CHOICE Act strategically limits its enhanced protections to higher-compensated employees by establishing a significant salary threshold that must be met. To qualify for coverage under the Act, employees must earn a base salary (explicitly excluding commissions, bonuses, and other variable compensation) that equals or exceeds twice the average annual mean wage for the applicable geographic area. This calculation is determined based on either: 

1. The Florida county where the employer’s headquarters is located, or 

1. The employee’s own location if the employer’s headquarters is situated outside Florida 

This carefully calibrated threshold ensures that the Act’s most powerful protections apply primarily to senior executives, key leaders, and specialized professionals who have greater access to sensitive business information and client relationships, while maintaining standard restrictive covenant protections for other employees under Florida’s existing statute. 

Proper Notification 

To satisfy the CHOICE Act’s procedural safeguards and ensure enforceability of restrictive covenant agreements, employers must fulfill several critical notification obligations to covered employees. These mandatory notification requirements include providing employees with: 

1. Written instructions to seek legal counsel to review the agreement’s terms and implications 

1. At least 7 days’ notice before the agreement takes effect to ensure adequate time for consideration 

1. Adequate consideration for the agreement, which may include initial employment, continued employment, promotions, or other valuable benefits 

Failure to strictly adhere to these notification requirements could render an otherwise valid restrictive covenant unenforceable, highlighting the importance of proper procedural compliance from the outset. 

Strategic Implementation for Florida Businesses 

Forward-thinking employers who want to maximize their protection under Florida’s new CHOICE Act should take several important steps to prepare for its implementation. First, evaluate current restrictive covenant agreements to ensure compliance with the CHOICE Act’s provisions. As part of that process, determine which employees meet the salary threshold requirements:  

1. According to Bureau of Labor Statistics data, the average annual salary in Florida is currently $60,210.00.
2. For Miami-Dade County (the highest-paid county), the average is $72,800.00.
3. This means covered employees must earn a base salary of at least $120,420.00 to $145,600.00 per year depending on location.

Then, on an ongoing basis, you’ll want to review and adjust compensation as federal average salary calculations are updated (typically quarterly).  

Important Considerations for All Florida Employers 

Even employers not implementing CHOICE Act agreements should remain aware of these provisions when making hiring decisions. When recruiting candidates earning over $120,000.00 at their previous employment, carefully assess whether they may be subject to a CHOICE Act agreement and understand the associated risks. 

Preparing for a New Era in Florida Employment Law 

The CHOICE Act represents a significant evolution in Florida’s already employer-friendly approach to restrictive covenants. While primarily targeted toward senior management and executive teams rather than rank-and-file employees, this legislation will have far-reaching implications for employment practices throughout the state. From financial institutions to manufacturing companies and professional services firms1, businesses of all types should begin preparing now to effectively implement or navigate these new provisions when they take effect. 

Secure Your Business with Specialized Non-Compete Guidance 

Don’t wait until July 1, 2025, to strengthen your business’s protective measures. Kelley Kronenberg’s attorneys are ready to help you prepare for the CHOICE Act’s implementation and maximize your competitive advantage under Florida’s enhanced non-compete laws. 

At Kelley Kronenberg, we pride ourselves on our cross-practice approach to client representation. Our collaborative model ensures that your business benefits from seamless coordination between our Labor and Employment, Business and Corporate, and Technology specialists. This integrated strategy delivers comprehensive solutions tailored to your specific industry needs, providing you with the strongest possible protection for your valuable business assets. 

Our team offers comprehensive guidance on drafting CHOICE Act-compliant agreements, reviewing existing covenants, developing protection strategies, and navigating potential litigation. Contact our Labor and Employment team today to ensure your business is fully prepared to leverage Florida’s powerful new legal tools for protecting your competitive advantage. 

David S. Harvey
Partner, Labor & Employment
Kelley Kronenberg-Tampa, FL
(813) 223-1697
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Timothy Shields
Partner/Business Unit Leader, Data Privacy & Technology
Kelley Kronenberg-Fort Lauderdale, FL
(954) 370-9970
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