In Florida workplaces, it can be confusing and problematic when a worker wants to leave, and the employer does not want them to join a competitor. It is with this in mind that non-compete agreements are put in place. There has long been a debate as to how far these agreements should go in keeping an employee tethered to a certain place and how best to protect the employer’s interests.
Recently, the Sunshine State put into effect a new law granting employers greater influence on enforcing non-compete agreements. Since it has just been implemented, it is imperative that employees and employers understand if it impacts them and what its ramifications might be.
What is the CHOICE Act?
The Florida Contracts Honoring Opportunity, Investment, Confidentiality and Economic Growth – shortened to CHOICE – went into effect on July 1. It provides employers with new protections with non-compete agreements.
It is for employees who earn more than double the average wage in their specific county. In addition, it has limits on whether employees can go and work for a competing or rival company. Employers can also extend the agreement to four years. Before the law, it was two. During that time, the employee cannot go work for a competitor if it is in a certain location.
For employers, it strives to make Florida a friendlier location for businesses. Still, there is evidence that non-compete agreements lower employee wages, prevent innovation, and hinder job creation.
It is important to note that the law allows for a preliminary injunction if there is a simple accusation that the non-compete agreement was violated. This will stop employees who are subject to this law from leaving and could put them in a state of limbo, in disfavor at their current job and unable to start a new job.
Another challenge is the “garden leave” agreement which lets the employer place an employee on leave for as long as four years during which they cannot resign or compete with the company without permission. They will get paid but have obstacles with their benefits.
Experienced professionals can help with understanding new employment laws
Employers who are prevented from leaving will undoubtedly view the CHOICE Act one way; employers who do not want the employee to depart for a competitor will see it a different way. For help with understanding the CHOICE Act or any other area of employment law, it is wise to have professional guidance.