Florida Senate - 2023 SB 1498 By Senator Brodeur 10-00345B-23 20231498__ 1 A bill to be entitled 2 An act relating to invalid restrictive covenants in 3 health care; amending s. 542.336, F.S.; specifying 4 that certain restrictive covenants in employment 5 agreements relating to certain licensed physicians do 6 not support a legitimate business interest; specifying 7 such restrictive covenants are void and unenforceable; 8 providing applicability; defining the term 9 “compensation”; providing an effective date. 10 11 Be It Enacted by the Legislature of the State of Florida: 12 13 Section 1. Section 542.336, Florida Statutes, is amended to 14 read: 15 542.336 Invalid restrictive covenants.— 16 (1) A restrictive covenant entered into with a physician 17 who is licensed under chapter 458 or chapter 459 and who 18 practices a medical specialty in a county wherein one entity 19 employs or contracts with, either directly or through related or 20 affiliated entities, all physicians who practice such specialty 21 in that county is not supported by a legitimate business 22 interest. The Legislature finds that such covenants restrict 23 patient access to physicians, increase costs, and are void and 24 unenforceable under current law. Such restrictive covenants 25 shall remain void and unenforceable for 3 years after the date 26 on which a second entity that employs or contracts with, either 27 directly or through related or affiliated entities, one or more 28 physicians who practice such specialty begins offering such 29 specialty services in that county. 30 (2) A restrictive covenant entered into with a physician 31 who is licensed under chapter 458 or chapter 459 which restricts 32 the physician from practicing medicine in any geographic area 33 for any period of time after the termination of a contract, 34 partnership, employment, or professional relationship is not 35 supported by a legitimate business interest. Such restrictive 36 covenants are void and unenforceable. 37 (a) This subsection does not apply to any of the following 38 restrictive covenants: 39 1. Related to any research conducted by the physician under 40 the terms of a contract or in furtherance of a partnership, 41 employment, or professional relationship; provided, however, 42 that the covenant does not impair the continuing care and 43 treatment of a specific patient or patients whose care and 44 treatment were part of the research. 45 2. Related to physicians, other than primary care 46 physicians or pediatricians, whose compensation is at least 47 $250,000 per year. As used in this subparagraph, the term 48 “compensation” means: 49 a. For an employed physician, the amount of wages or salary 50 paid to the physician for the previous tax year or expected to 51 be paid for the current tax year; or 52 b. For a physician with a partnership or similar ownership 53 interest in the profits of a practice, the amount of business 54 income attributed to the physician for the previous tax year or 55 expected to be attributed to the physician for the current tax 56 year. 57 (b) This subsection applies to restrictive covenants 58 entered into on or after July 1, 2023. 59 Section 2. This act shall take effect July 1, 2023.