Florida just threw a curveball into the national debate over non-compete agreements, and the ripples are already making waves from Miami’s high-rises to Silicon Valley’s boardrooms. With the CHOICE Act now in effect, Florida positions itself as the most employer-friendly state for enforcing non-compete clauses, especially for high-earning tech professionals. The move comes at a moment when the Federal Trade Commission (FTC) is pushing to ban most non-competes nationwide, setting up a collision course between state and federal priorities. For tech companies, founders, and talent scouts, the stakes have never been higher.
Why Non-Competes Matter More Than Ever
The tech sector’s war for talent is fierce—think multimillion-dollar signing bonuses and aggressive poaching of AI engineers. In this climate, companies are desperate to protect their secret sauce: proprietary algorithms, customer lists, and go-to-market strategies. Non-compete agreements have long been a favored weapon, but their legal enforceability varies wildly state by state. California, for example, has all but banned them, while Florida just cranked up the dial in the opposite direction. The new CHOICE Act, effective July 1, 2025, lets employers lock in top talent with non-compete clauses lasting up to four years—so long as the worker earns at least twice the mean wage for their county. That means six-figure earners in Miami, Tampa, or Orlando could be sidelined for years if they jump ship to a competitor.
What’s Really Changed: The CHOICE Act in Plain English
Florida’s CHOICE Act—short for Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth—sets out a clear, employer-friendly roadmap for non-compete agreements. Here’s how it works:
- Eligibility: Only applies to employees or contractors making more than double the mean local wage (often $80,000–$165,000, depending on the county).
- Duration: Non-competes can last up to four years post-employment, a huge jump from the previous two-year standard.
- Enforcement: Courts are required to issue preliminary injunctions, effectively blocking a departing employee from working for a competitor almost immediately if the agreement is valid.
- Procedural Safeguards: Employees must be advised in writing of their right to seek counsel, given at least seven days to review the agreement, and acknowledge in writing that they’ll receive confidential information or develop customer relationships.
- Geographic Reach: The law applies regardless of choice-of-law clauses favoring other states, so long as the employee primarily works in Florida or the employer is based there.
The result? Florida now offers tech companies a level of predictability and legal muscle unmatched anywhere else in the U.S.
Why Did Florida Go This Route?
While other states—spurred by the FTC’s new rule—are scaling back non-competes, Florida’s legislature made the opposite bet. Lawmakers argue that strong contract enforcement encourages companies to invest in training, information sharing, and R&D. They also claim that alternatives like nondisclosure agreements or nonsolicitation clauses don’t do enough to protect against global risks and talent raids. The Act’s legislative findings spell it out: predictability in enforcement, they say, is a magnet for investment and innovation.
The Federal Counterpunch: FTC’s Nationwide Ban
Here’s where it gets complicated. In April 2024, the FTC issued a sweeping rule banning most non-compete agreements nationwide, except for senior executives and business sellers. The FTC’s rationale? Non-competes suppress wages, stifle innovation, and block new business formation. They estimate the rule will add 8,500 startups a year and boost worker earnings by $524 annually. However, the rule is already tied up in court, and its future is anything but settled.
So, Florida’s CHOICE Act and the FTC’s ban are on a collision course. For now, Florida employers must walk a tightrope, ensuring compliance with both the new state law and the federal rule—at least until the legal dust settles.
Tech Companies: The Big Winners?
Let’s get practical. Imagine you’re the CEO of an AI startup. Your Chief AI Officer, privy to your trade secrets, gets poached by a rival for a fat signing bonus. In California, you’d have little recourse; in Florida, thanks to the CHOICE Act, you can file suit and likely get a judge to immediately block her from working for the competition. For companies betting big on intellectual property—think AI labs, fintech, or biotech—this is a huge deal.
But it’s not just about lawsuits. The mere existence of strong, enforceable non-competes can deter talent raids, protect confidential information, and stabilize teams. That’s especially attractive to companies considering relocating or expanding to Florida, where the legal climate now tilts decisively in their favor.