On April 29, 2025, the “Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act” became law in Florida. The law is the first piece of legislation that requires courts to enjoin employees from violating an enforceable non-compete agreement, and it will take effect on July 1, 2025. The law represents a significant shift in the state's approach to non-compete agreements and restrictive covenants.

What is a covered non-compete agreement?

A covered non-compete agreement is a written agreement between an employee and an employer. But, unlike an offer of employment, a non-compete agreement seeks to prevent an employee from leaving their job and taking a similar role with a competitor. And, it must be “reasonably likely” that the employee would use confidential information or customer relationships in their new employment.

Are employers required to give notice?

Yes. Employers must do two things: 

1. Give a 7-day notice of the non-compete agreement before the agreement or job offer expires; and 
2. Notify employees of their right to seek counsel prior to executing the agreement.

How long can restrictions last?

The law allows employers to have employees sign a non-compete agreement restricting an employee from competing against it for a maximum duration of four years. 

What issues will employers face enforcing non-compete agreements?

The law creates a presumption that covered non-compete agreements are enforceable and do not violate public policy. 

What does presumption of enforceability mean?

Courts are required to issue an injunction if an employer with a non-compete agreement that complies with the law files a lawsuit against a former employee.

That said, employees can attempt to modify or dissolve the injunction if they can meet a heightened burden of proof:

1. They will not perform work or services similar to their previous employment; 
2. They will not use confidential information of the former employer; 
3. They will not use the former employer's customer relationship in their new employment;
4. The former employer failed to pay or provide enough consideration (e.g., pay raise, bonus, continued employment, etc.); or 
5. That the new employer does not do business in or is not planning to do business in the same industry as the previous employer and that the new employer is not in the same geographic area as the former employer.

Using the same heightened burden of proof, an employee's new employer may also attempt to modify or dissolve the injunction if they show:

1. The covered employee will not perform work or services similar to the former employer; or 
2. That the new employer does not do business in or is not planning to do business in the same industry as the previous employer and that the new employer is not in the same geographic area as the former employer.

How can employers know if the agreements are enforceable?

Employers should consider reviewing non-compete agreements with counsel to ensure they comply with the law.