Florida’s Prposed CHOICE ACT
In 2025, the Florida Legislature introduced Senate Bill 922 (SB 922), a proposed law that could transform employment agreements across the state. Sponsored by Senator Leek, this bill establishes "The Florida Trade Secret Protection Act" under Part II of Chapter 542, Florida Statutes. It introduces two key concepts: "covered garden leave agreements" and "covered noncompete agreements," aimed at safeguarding employers' confidential information and customer relationships. This article explores the bill's provisions, its potential impact on employees and employers, and what it could mean for Florida's workforce and economy.
What is SB 922?
SB 922 creates a legal framework to protect trade secrets through two types of employment agreements:
Covered Garden Leave Agreements: These require employees to provide up to four years of advance notice before leaving their job. During this notice period, employers must pay the employee's salary and benefits, but after the first 90 days, the employee may not be required to work.
Covered Noncompete Agreements: These prevent employees from working for competitors or starting similar businesses for up to four years after employment ends. The agreements can be global in scope, and the noncompete period is reduced by any nonworking time under a garden leave agreement.
The bill applies to "covered employees"—those earning more than twice Florida's annual mean wage or with access to confidential information or customer relationships. Medical professionals are exempt.
Key Provisions of SB 922
Definitions and Scope
Covered Employees: Includes high earners or those with sensitive knowledge, identified by salary or written acknowledgment of access to confidential data.
Notice Period: Up to four years for garden leave agreements, during which employees receive salary and benefits.
Noncompete Period: Up to four years, potentially worldwide, restricting similar work or use of employer information.
Employer and Employee Obligations
Notice Requirements: Employers must give at least seven days' notice before an offer expires, and employees must acknowledge in writing they were advised to seek legal counsel.
Flexibility: After 90 days of a garden leave notice period, employees can engage in nonwork activities or, with permission, work elsewhere. Employers can waive notice with 30 days' written notice.
Enforcement
Injunctions: Courts must issue preliminary injunctions to stop breaches of either agreement. Employees or other parties can challenge this with "clear and convincing evidence" that no confidential information will be used or that the employer failed to pay as agreed.
Remedies: Prevailing employers can recover damages and attorney fees. Gross misconduct allows salary or benefit reductions without breaching the agreement.
Legal Protections
Antitrust Exemption: These agreements are not considered restraints of trade or monopolistic under Florida law, ensuring enforceability if they meet the bill's criteria.
Potential Impact on Employees and Employers
For Employees
Challenges: The long notice and noncompete periods could limit job mobility, especially for high earners or those in sensitive roles. A four-year restriction might deter career changes or entrepreneurship.
Benefits: Employees retain salary and benefits during garden leave, and the ability to pursue nonwork activities or other jobs (with approval) offers some flexibility.
For Employers
Advantages: The bill strengthens protections for trade secrets and client relationships, reducing the risk of losing competitive edges to departing employees.
Trade-offs: Lengthy commitments might make it harder to attract talent wary of restrictive terms, particularly in competitive industries.
Broader Implications for Florida's Economy
SB 922 aims to bolster Florida's appeal to businesses by enhancing legal predictability for trade secret protection. The legislature argues that existing tools like nondisclosure agreements are insufficient against global risks, justifying these measures to encourage investment.
However, the bill could have downsides:
Innovation: Long restrictions might hinder startups and innovation if employees face barriers to launching ventures.
Talent Attraction: Florida risks losing appeal to workers who prefer fewer constraints, especially compared to states with shorter noncompete limits.
Industries like technology, finance, and consulting—where confidential information drives success—may see the most impact, while lower-wage sectors remain largely unaffected.
Conclusion
Florida Senate Bill 922 (2025) proposes a bold approach to employment agreements, prioritizing trade secret protection through extended garden leave and noncompete clauses. While it offers employers significant safeguards, it raises questions about workforce flexibility and Florida's competitiveness as a job market. As the bill moves toward its proposed effective date of July 1, 2025, stakeholders should weigh its protections against its potential to reshape career dynamics in the state.
Sources:
Florida Senate - 2025 SB 922
Bill text provided by Senator Leek (7-00626A-25)
