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 a contract are not supported by a legitimate business interest. The bill also clarifies that such covenants will remain void for three years after a competing entity begins offering similar services in the same county.

Additionally, the bill introduces definitions and exceptions related to restrictive covenants. It defines "compensation" for employed physicians and those with ownership interests, and it outlines specific scenarios where restrictive covenants may still be valid, such as in relation to research or for physicians earning over $250,000 annually. The provisions of this bill will apply to restrictive covenants entered into on or after July 1, 2025, with the act taking effect on that date.

Statutes affected:
S 942 Filed: 542.336