
Non‑compete agreements continue to be an important tool for Florida employers seeking to protect trade secrets, customer relationships and other competitive advantages, but their enforceability has evolved significantly in recent years. Employers, employees and contractors alike should understand how Florida law treats restrictive covenants in 2026, especially after major statutory changes that took effect in 2025.
Below, we explain what non‑compete agreements are, how Florida courts decide whether they’re enforceable and key statutory updates that both employers and workers need to know.
Florida’s Legal Framework for Non‑Competes
Under Florida law, non‑compete agreements are generally enforceable only if they are part of a written agreement signed by the party subject to the restriction and if the restrictions are designed to protect legitimate business interests. This has been the standard under Florida Stat. §542.335, which long required non‑competes to be:
- Written and signed,
- Designed to protect a legitimate business interest (like trade secrets or customer relationships) and
- Reasonable in scope, duration and territory
In practice, courts look at whether the restriction is necessary to protect information or relationships developed through employment, and whether it imposes more burden on the worker than necessary. Reasonableness has traditionally meant limiting time and geography, so employees aren’t barred from earning a living indefinitely.
New Employer‑Friendly Standards (CHOICE Act)
In 2025, Florida passed the Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act (the “CHOICE Act”), which represents a major shift in how certain non‑compete agreements are treated. This law took effect on July 1, 2025, and supplements the existing statutory framework rather than replacing it.
Key aspects of the CHOICE Act include:
- Certain “covered” non‑compete agreements are presumed enforceable if the terms meet statutory criteria.
- Agreements can include restrictions of up to four years, which expands beyond the traditional two‑year standard.
- No geographic restriction is required for covered agreements under this Act.
Courts are directed to grant preliminary injunctions to enforce covered non‑competes unless the employee shows by clear and convincing evidence that they won’t compete, won’t misuse confidential information or won’t work in a similar business during the restricted period.
The Act also expressly permits enforcement against new employers who hire someone subject to a covered non‑compete.
To qualify as covered, the employee or contractor typically must meet certain income thresholds or have direct access to confidential information or customer relationships. Certain professions, such as many licensed healthcare practitioners, may be excluded.
What “Legitimate Business Interest” Means
Even before the CHOICE Act, Florida courts required non‑compete agreements to protect legitimate interests, which have included trade secrets and confidential information, substantial relationships with specific clients or customers, specialized training provided by the employer and goodwill associated with an ongoing business.
If an agreement fails to protect a legitimate interest, it may be deemed unenforceable even if it is otherwise reasonable.
Reasonableness in Duration and Scope
Traditionally, under Florida Stat. §542.335, courts evaluate restrictions on three main fronts:
- Duration – Up to two years was often considered presumptively reasonable for ordinary employees, and up to three years in the sale‑of‑business context.
- Geographic scope – Must relate to where the employer does business or where the employee worked.
- Line of business – The restriction should cover only activities similar to what the employee performed or had access to.
Under the CHOICE Act, covered non‑competes may extend to four years post‑termination, and courts are less likely to strike down duration or geography as unreasonable if statutory requirements are met.
Practical Takeaways for Employers and Employees
The CHOICE Act has implications for employers and employees in Florida.
For Employers, smart actions to take include:
- Drafting non‑competes carefully with clear definitions of confidential information and services.
- Considering whether the employee meets the covered criteria (e.g., salary and access to information).
- Providing written notice and time to seek counsel before requiring signing.
- Being prepared to enforce through injunctions if violations occur.
For Employees, do not assume a non‑compete is unenforceable. Florida historically enforces these agreements if they meet statutory requirements. Be sure also to review whether the restriction is reasonable in time, geography and scope, and always seek legal review before signing or when presented with an alleged violation.
Contact Us at Sirulnik Law with Questions
Florida remains one of the most employer‑friendly states when it comes to non‑compete enforcement, especially after the CHOICE Act’s effective date in mid‑2025. While the old standards under §542.335 still apply in many cases, the new law broadens enforcement opportunities for “covered” agreements.
Whether you’re drafting a restrictive covenant as an employer or evaluating one as an employee, understanding both the traditional reasonableness standards and the new statutory presumptions is essential in 2026. If you have questions, don’t hesitate to reach out to our experienced business law attorneys at the Law Offices of Alex D. Sirulnik, P.A.
