Bill > S0942

This bill amends Florida law to significantly limit the enforceability of restrictive covenants (non-compete agreements) for physicians licensed under chapters 458 and 459. Specifically, the bill declares that restrictive covenants preventing physicians from practicing medicine in a geographic area after terminating their employment or professional relationship are generally not supported by a legitimate business interest and are therefore void and unenforceable. However, the bill provides three key exceptions: first, restrictive covenants related to specific medical research that do not impair patient care; second, covenants involving physicians with annual compensation of at least $250,000 (with detailed definitions of how compensation is calculated); and third, covenants related to physicians selling their ownership interest in a medical business or practice, where the restrictive covenant is necessary to protect the buyer's legitimate business interests. The legislation defines "compensation" comprehensively, including wages, bonuses, benefits, and business income for both employed physicians and those with partnership interests. The bill will apply to restrictive covenants entered into on or after July 1, 2025, and aims to protect patient access to healthcare and reduce restrictions on physicians' ability to practice medicine.

Business and Industry

https://www.flsenate.gov/Session/Bill/2025/942