Florida Businesses Must Review Non-Compete Contracts Quickly Under CHOICE Act

Over the past few years, there has been a national trend to eliminate or weaken non-compete contracts for employers.

Last year, we wrote several articles about how the Federal Trade Commission under the Biden administration eliminated non-compete contracts and was then blocked by the federal courts from eliminating them.

At the time, the Federal Trade Commission said non-compete contracts kept wages low, stifled innovation and increased prices for consumers. Many states have agreed and started lowering their enforceability.

Not Florida.

This past legislative session, the State of Florida said it disagreed. In House Bill 1219, known as the CHOICE Act is said just about the opposite. In the bill, they said:

“The Legislature finds that a proper and legitimate state interest is served by enforcing strong legal protections in contracts between employers and contracted personnel, which encourage optimal levels of information sharing and training and development.

The Legislature further finds that alternative means of protecting confidential information and client relationships, such as nondisclosure agreements, fixed-duration term contracts, and nonsolicitation clauses in employment contracts, are inadequate to protect against the significant global risks faced by companies in this state. The Legislature further finds that predictability in the enforcement of contracts described in this part encourages investment in this state.”

With this new legislation affecting nearly all Florida businesses, it is important that all employers, including those who work with independent contractors, review their non-compete contracts and garden-leave agreements as soon as possible to ensure they are covered by the new laws and regulations.

The attorneys at The Orlando Law Group specialize in helping businesses with employer issues in Orlando, Sanford, Winter Garden and Kissimmee. When it comes to homeowners facing construction liens, an attorney is essential.

Differences in non-compete contracts and garden-leave agreements

Most people understand what a non-compete contract covers. Even if they have never been in a position where they could cause damage to a company by working with a competitor, they are familiar with the concept.

Read More.