- posted: Feb. 05, 2026
Businesses have utilized many different methods to guard against employees leaving the company and then using what they’ve learned against their former employer. One option is commonly referred to as “garden leave.” Under this type of arrangement, the employer directs a departing worker to stay home for a period of weeks or months. While the individual continues to receive their pay and benefits, they usually have limited or no access to company systems and clients.
Employers might use garden leave in conjunction with, or in place of, a restrictive covenant preventing a former worker from taking certain jobs after leaving the company. At both the state and federal level, there has been a great deal of activity over the past few years relating to noncompete agreements and other restrictive covenants. An effort by the Federal Trade Commission to ban noncompete agreements nationwide under the Biden administration has apparently gone by the wayside following challenges and the change in presidential administrations.
Meanwhile, Florida enacted the CHOICE Act in 2025, which gives businesses the ability to impose garden leave and post-employment restraints for up to four years in cases relating to high-earning workers. For other employees, the restrictions can last as long as two years. Moreover, the law includes a presumption that restrictive covenants are valid and enforceable. The burden is with the ex-employee to show that the agreement is improper due to fraud or another reason.
As an individual remains technically employed, the CHOICE Act might not have as much of an effect on garden leave cases, but the law does set forth specific rules for these arrangements. If a garden leave term was set previously, the employer can reduce the timeframe with 30 days’ notice. There is also a transition period that can last as long as 90 days in which a company may require the employee to perform certain job duties.
To be enforceable, garden leave agreements need to be written, and employees must have the chance to consult with counsel before signing. Though garden leave is not as common here as in other countries, the CHOICE Act could make it a common option for businesses that are willing to provide salary and benefits for a time so that they can manage the transition without worrying about immediate competition from the departing worker.
Clay Parker, Esq. The Florida Lawyer advises clients across the state regarding the enforcement of noncompete agreements and other restrictive covenants. For an appointment to discuss your particular legal needs, please call [ln::phone] or contact us online. Our office is in Orlando.
