The bill amends Section 542.336 of the Florida Statutes to declare certain restrictive covenants in employment agreements with licensed physicians as void and unenforceable. Specifically, it states that restrictive covenants that limit a physician's ability to practice in a geographic area after the termination of their contract are not supported by a legitimate business interest. The bill also specifies that such covenants will remain void for three years after a competing entity begins offering similar services in the same county.

Additionally, the bill outlines exceptions to this rule, including covenants related to research conducted by the physician, those involving physicians with a compensation of at least $250,000 per year, and covenants associated with the sale of a medical business or practice. The term "compensation" is defined within the bill, and it establishes that these provisions will apply to restrictive covenants entered into on or after July 1, 2025. The act is set to take effect on that same date.

Statutes affected:
S 942 Filed: 542.336