Florida’s new, employer-friendly law, known as the Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act (aka, the CHOICE Act) became effective on July 1, 2025, strengthening the limitations employers may impose on where and how certain employees work after they leave a job, primarily targeting high-earning, non-licensed employees. Key to understanding this law is knowing that it does not apply to licensed healthcare providers; restrictive covenants with healthcare providers are still governed by Florida’s current requirements for such arrangements. However, with respect to other high-earning employees (think sales reps, upper management/C-suite, etc.), the new law gives employers broader power to enforce restrictive covenants, particularly with respect to the use of confidential information.
Healthcare Provider Contracts
The CHOICE Act does not apply to healthcare practitioners licensed pursuant to Florida Statutes § 456.001, which includes a broad spectrum of occupational licensure types, such as but not limited to:
- physicians (MDs and DOs);
- nurse practitioners (NPs);
- physician assistants (PAs);
- registered nurses (RNs);
- licensed practical nurses (LPNs); and
- chiropractors (DCs).
Although the CHOICE Act is not applicable to relationships with licensed healthcare providers, med spa owners and operators may still structure restrictive arrangements pursuant to Florida’s existing noncompete law at Fla. Stat. § 542.335.
Non-Clinical Provider Contracts
The CHOICE Act applies to arrangements between an employer and a “covered employee,” which is defined to mean an employee or independent contractor who earns (or is reasonably expected to earn) a salary greater than twice the average annual wage in a specific county.
County selection depends on the employer’s location:
- If the employer is based in Florida, the wage threshold is based on the average annual wage within the county where the employer has its main office.
- If the employer is based outside of Florida, the threshold is based on the average annual wage within the county where the employee lives.
The CHOICE Act provides for enhanced enforcement of the following types of restrictive agreements (whether standalone or as part of broader contracts):
- An executed noncompete agreement that prohibits a current or former employee from working in a similar role or using the employer’s confidential information to aid a competing business. This restriction may last up to four years and must be tied to a defined geographic area. The agreement must also meet several other requirements under the CHOICE Act, dependent on the specific circumstances of the arrangement.
- An executed garden leave agreement that requires the employer and employee to give up to four years of advance notice before terminating the relationship, during which the employee continues receiving full salary and benefits, even if they are no longer actively working. The agreement must meet several other requirements under the CHOICE Act, dependent on the specific circumstances of the arrangement.
To be valid, the agreement must be in writing, include specific notice-and-disclosure statements, and be supported by the employee’s written acknowledgment of receiving the employer’s confidential information or exposure to/involvement with the employer’s customer relationships, among other requirements. If enforced in court, employers benefit from a mandatory preliminary injunction, which requires the employee to cease performing the competitive activity and shifts the burden to the employee to prove by “clear and convincing evidence” that no violation of the restrictive covenants has occurred or will occur if the employee continues to engage in the competitive activity. This is a very high bar for former employees to meet.
Why This Matters for Med Spas
If you own or operate a med spa in Florida, it is important to remember that the CHOICE Act is intended to assist employers with protecting their confidential information after a high-earning non-licensed employee departs from the relationship; it does not change how you are to contract with licensed healthcare providers. If you are onboarding new staff, updating your current contracts, or reviewing old ones, now is the time to make sure your arrangements meet your business goals by ensuring you have the right legal set up. We’re here to help to ensure your employment and contractor agreements are enforceable and fully compliant.