Florida Senate - 2025                        COMMITTEE AMENDMENT
       Bill No. CS for SB 922
       
       
       
       
       
       
                                Ì839748^Î839748                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/02/2025           .                                
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       The Committee on Judiciary (Leek) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Part I of chapter 542, Florida Statutes,
    6  consisting of ss. 542.15-542.36, Florida Statutes, is created
    7  and entitled the “Florida Antitrust Act of 1980.”
    8         Section 2. Part II of chapter 542, Florida Statutes,
    9  consisting of ss. 542.41-542.45, Florida Statutes, is created
   10  and entitled the “Florida Contracts Honoring Opportunity,
   11  Investment, Confidentiality, and Economic Growth (CHOICE) Act.”
   12         542.41Short title.—This part may be cited as the “Florida
   13  Contracts Honoring Opportunity, Investment, Confidentiality, and
   14  Economic Growth (CHOICE) Act.”
   15         542.42Legislative findings.—The Legislature finds that a
   16  proper and legitimate state interest is served by enforcing
   17  strong legal protections in contracts between employers and
   18  contracted personnel which encourage optimal levels of
   19  information sharing and training and development. The
   20  Legislature further finds that alternative means of protecting
   21  confidential information and client relationships, such as
   22  nondisclosure agreements, fixed-duration term contracts, and
   23  nonsolicitation clauses in employment contracts, are inadequate
   24  to protect against the significant global risks faced by
   25  companies in this state. The Legislature further finds that
   26  predictability in the enforcement of contracts described in this
   27  part encourages investment in this state. Therefore, the
   28  Legislature determines and declares that this part fulfills an
   29  important state interest.
   30         542.43Definitions.—For the purposes of this part, the
   31  term:
   32         (1)“Annual mean wage of employees in Florida” or “annual
   33  mean wage” means the most recent annual mean wage as calculated
   34  by the United States Department of Labor Bureau of Labor
   35  Statistics, or its successor calculation, for all occupations in
   36  this state.
   37         (2)“Benefit” means access to health insurance, life
   38  insurance, or disability insurance that is the same as or
   39  similar to the insurance that a covered employee had access to
   40  and at the same cost to that employee during the month before
   41  the commencement of his or her notice period.
   42         (3)“Covered employee” means an employee or individual
   43  contractor who earns or is reasonably expected to earn a salary
   44  greater than twice the annual mean wage, or who has access to
   45  his or her employer’s or client’s confidential information or
   46  customer relationships. The term does not include a person
   47  classified as a medical professional as defined in s. 1006.0626.
   48         (4)“Covered employer” means an entity or individual who
   49  employs or engages a covered employee.
   50         (5)“Covered garden leave agreement” means a written
   51  agreement, or part of a written agreement, between a covered
   52  employee and covered employer in which:
   53         (a)The covered employee and covered employer agree to up
   54  to, but no more than, 4 years of advance, express notice before
   55  terminating the employment or contractor relationship;
   56         (b)The covered employee agrees not to resign before the
   57  end of such notice period; and
   58         (c)The covered employer agrees to retain the covered
   59  employee for the duration of such notice period and to continue
   60  paying the covered employee the same salary and providing the
   61  same benefits that the covered employee received from the
   62  covered employer in the last month before the commencement of
   63  the notice period. The covered employer is not obligated to
   64  provide discretionary incentive compensation or benefits or have
   65  the covered employee continue performing any work during the
   66  notice period.
   67         (6)“Covered noncompete agreement” means a written
   68  agreement, or a portion of a written agreement, between a
   69  covered employee and a covered employer in which, for a period
   70  not to exceed 4 years and within the geographic area defined in
   71  the agreement, the covered employee agrees not to assume a role
   72  with or for another business, entity, or individual:
   73         (a)In which the covered employee would provide services
   74  similar to the services provided to the covered employer during
   75  the 3 years preceding the noncompete period; or
   76         (b)In which it is reasonably likely the covered employee
   77  would use the confidential information or customer relationships
   78  of the covered employer.
   79         (7)“Noncompete period” means the time from the covered
   80  employee’s termination of employment through the end of the
   81  agreed-upon postemployment period of noncompetition as set forth
   82  in the covered noncompete agreement.
   83         (8)“Notice period” means the date from the covered
   84  employee’s or covered employer’s written notice of intent to
   85  terminate the covered employee’s employment through the date of
   86  termination as set forth in a covered garden leave agreement.
   87         (9)“Primary place of work” means the location where the
   88  covered employee spends more work time than any other single
   89  workplace.
   90         (10)“Salary” means the base compensation, calculated on an
   91  annualized basis, which a covered employer pays a covered
   92  employee, including a base wage, a salary, a professional fee,
   93  or other compensation for personal services, and the fair market
   94  value of any benefit other than cash. Salary does not include
   95  health care benefits, severance pay, retirement benefits,
   96  expense reimbursement, distribution of earnings and profits not
   97  included as compensation for personal services, discretionary
   98  incentives or awards, or anticipated but indeterminable
   99  compensation, including tips, bonuses, or commissions.
  100         542.44Covered garden leave agreement.—
  101         (1)APPLICABILITY.—This section applies to:
  102         (a)A covered garden leave agreement with a covered
  103  employee who maintains a primary place of work in this state,
  104  regardless of any applicable choice of law provisions; or
  105         (b)A covered garden leave agreement with a covered
  106  employer whose principal place of business is in this state and
  107  that is expressly governed by the laws of this state.
  108  
  109  If any provision of this section is in conflict with any other
  110  law, the provisions of this section shall govern.
  111         (2)RESTRAINT OF TRADE.—A covered garden leave agreement
  112  does not violate public policy as a restraint of trade, as
  113  described in s. 542.18, or an attempt to monopolize trade or
  114  commerce in this state, as described in s. 542.19, and is fully
  115  enforceable according to its terms, provided that:
  116         (a)A covered employee was advised, in writing, of the
  117  right to seek counsel prior to execution of the covered garden
  118  leave agreement and was provided notice as described in
  119  subsection (3);
  120         (b)A covered employee acknowledges, in writing, receipt of
  121  confidential information or customer relationships; and
  122         (c)The covered garden leave agreement provides that:
  123         1.After the first 90 days of the notice period, the
  124  covered employee does not have to provide services to the
  125  covered employer;
  126         2.The covered employee may engage in nonwork activities at
  127  any time, including during normal business hours, during the
  128  remainder of the notice period; and
  129         3.The covered employee may, with the permission of the
  130  covered employer, work for another employer while still employed
  131  by the covered employer during the remainder of the notice
  132  period.
  133         4.The garden leave agreement notice period may be reduced
  134  during the notice period if the covered employer provides at
  135  least 30 days’ advance notice in writing to the covered
  136  employee.
  137         (3)NOTICE.—
  138         (a)A covered employer must provide a proposed covered
  139  garden leave agreement to:
  140         1.A prospective covered employee at least 7 days before an
  141  offer of employment expires; or
  142         2.A current covered employee at least 7 days before the
  143  date that an offer to enter into a covered garden leave
  144  agreement expires.
  145         (b)A covered employer may, as provided for in the covered
  146  garden leave agreement, shorten the term of the notice period at
  147  any time during the notice period at any time during the notice
  148  period by providing at least 30 days’ advance notice in writing
  149  to the covered employee.
  150         (4)OTHER AGREEMENTS.—This section does not affect or limit
  151  the enforceability of any other employment agreement or any
  152  other agreement.
  153         (5)BREACH OF A COVERED GARDEN LEAVE AGREEMENT; REMEDIES.—
  154         (a)Upon application by a covered employer seeking
  155  enforcement of a covered garden leave agreement, a court must
  156  preliminarily enjoin a covered employee from providing services
  157  to any business, entity, or individual other than the covered
  158  employer during the notice period. The court may modify or
  159  dissolve the injunction only if the covered employee establishes
  160  by clear and convincing evidence that:
  161         1.The covered employee will not perform, during the notice
  162  period, any work similar to the services provided to the covered
  163  employer during the 3-year period preceding the commencement of
  164  the notice period, or use confidential information or customer
  165  relationships of the covered employer; or
  166         2.The covered employer has failed to pay or provide the
  167  salary and benefits provided for in the covered garden leave
  168  agreement during the notice period and has had a reasonable
  169  opportunity to cure the failure.
  170         (b)Upon application by a covered employer seeking
  171  enforcement of a covered garden leave agreement, a court must
  172  preliminarily enjoin a business, an entity, or an individual
  173  from engaging a covered employee during the covered employee’s
  174  notice period. The court may modify or dissolve the injunction
  175  only if the business, entity, or individual establishes by clear
  176  and convincing evidence, based on public or other
  177  nonconfidential information, that:
  178         1.The covered employee will not provide any services
  179  similar to the services provided to the covered employer during
  180  the 3-year period preceding the commencement of the notice
  181  period, or use confidential information or customer
  182  relationships of the covered employer; or
  183         2.The business or individual seeking to employ or engage
  184  the covered employee is not engaged in, and is not planning or
  185  preparing to engage in, any business activity similar to that
  186  engaged in by the covered employer during the notice period.
  187  
  188  Any information filed with the court which the covered employer
  189  deems to be confidential must be filed under seal to protect
  190  confidentiality or avoid substantial injury. A court must
  191  presume that an employee or individual contractor has access to
  192  confidential information or customer relationships if the
  193  employee or individual contractor acknowledges the access or
  194  receipt of such access in writing.
  195         (c)The injunctive relief provided under this section is
  196  not an exclusive remedy, and a prevailing covered employer is
  197  entitled to recover all available monetary damages for all
  198  available claims.
  199         (d)In any action to enforce this section, the prevailing
  200  party is entitled to reasonable attorney fees and costs.
  201         (e)If the covered employee engages in gross misconduct
  202  against the covered employer, the covered employer may reduce
  203  the salary or benefits of the covered employee or take other
  204  appropriate action during the notice period, which reduction or
  205  other action may not be considered a breach of the covered
  206  garden leave agreement.
  207         542.45Covered noncompete agreements.—
  208         (1)APPLICABILITY.—This section applies to:
  209         (a)A covered noncompete agreement with a covered employee
  210  who maintains a primary place of work in this state, regardless
  211  of any applicable choice of law provisions; or
  212         (b)A covered noncompete agreement with a covered employer
  213  whose principal place of business is in this state and that is
  214  expressly governed by the laws of this state.
  215  
  216  In either case, if any provision of this section is in conflict
  217  with any other law, the provisions of this section govern.
  218         (2)RESTRAINT OF TRADE.—A covered noncompete agreement does
  219  not violate public policy as a restraint of trade, as described
  220  in s. 542.18, or an attempt to monopolize trade or commerce in
  221  this state, as described in s. 542.19, and is fully enforceable
  222  according to its terms, provided that:
  223         (a)A covered employee was advised, in writing, of the
  224  right to seek counsel prior to execution of the covered
  225  noncompete agreement and was provided notice as described in
  226  subsection (3);
  227         (b)A covered employee acknowledges, in writing, receipt of
  228  confidential information or customer relationships; and
  229         (c)A covered noncompete agreement provides that the
  230  noncompete period is reduced day-for-day by any nonworking
  231  portion of the notice period, pursuant to a covered garden leave
  232  agreement between the covered employee and the covered employer,
  233  if applicable.
  234         (3)NOTICE.—A covered employer must provide a proposed
  235  covered noncompete agreement to:
  236         (a)A prospective covered employee at least 7 days before
  237  an offer of employment expires; or
  238         (b)A current covered employee at least 7 days before the
  239  date that an offer to enter into a covered noncompete agreement
  240  expires.
  241         (4)OTHER AGREEMENTS.—This section does not affect or limit
  242  the enforceability of any other employment agreement or any
  243  other agreement.
  244         (5)BREACH OF COVERED NONCOMPETE AGREEMENT; REMEDIES.—
  245         (a)Upon application by a covered employer seeking
  246  enforcement of a covered noncompete agreement, a court must
  247  preliminarily enjoin a covered employee from providing services
  248  to any business, entity, or individual other than the covered
  249  employer during the noncompete period. The court may modify or
  250  dissolve the injunction only if the covered employee establishes
  251  by clear and convincing evidence that:
  252         1.The covered employee will not perform, during the
  253  noncompete period, any work similar to the services provided to
  254  the covered employer during the 3-year period preceding the
  255  commencement of the noncompete period, or use confidential
  256  information or customer relationships of the covered employer;
  257  or
  258         2.The covered employer has failed to pay or provide the
  259  consideration provided for in the covered noncompete agreement
  260  and has had a reasonable opportunity to cure the failure.
  261         (b)Upon application by a covered employer seeking
  262  enforcement of a covered noncompete agreement, a court must
  263  preliminarily enjoin a business, an entity, or an individual
  264  from engaging a covered employee during the covered employee’s
  265  noncompete period. The court may modify or dissolve the
  266  injunction only if the business, entity, or individual
  267  establishes by clear and convincing evidence, based on public or
  268  other nonconfidential information, that:
  269         1.The covered employee will not provide any services
  270  similar to the services provided to the covered employer during
  271  the 3-year period preceding the commencement of the noncompete
  272  period, or use confidential information or customer
  273  relationships of the covered employer; or
  274         2.The business or individual seeking to employ or engage
  275  the covered employee is not engaged in, and is not planning or
  276  preparing to engage in, any business activity in the geographic
  277  area specified in the noncompete agreement during the noncompete
  278  period if such business activity is similar to that engaged in
  279  by the covered employer.
  280  
  281  Any information filed with the court which the covered employer
  282  deems to be confidential must be filed under seal to protect
  283  confidentiality or avoid substantial injury. A court must
  284  presume that an employee or individual contractor has access to
  285  confidential information or customer relationships if the
  286  employee or individual contractor acknowledges the access or
  287  receipt of such access in writing.
  288         (c)The injunctive relief provided in this section is not
  289  an exclusive remedy, and a prevailing covered employer is
  290  entitled to recover all available monetary damages for all
  291  available claims.
  292         (d)In any action to enforce this section, the prevailing
  293  party is entitled to reasonable attorney fees and costs.
  294         (e)If the covered employee engages in gross misconduct
  295  against the covered employer, the covered employer may reduce
  296  the salary or benefits of the covered employee or take other
  297  appropriate action during the noncompete period, which reduction
  298  or other action may not be considered a breach of the covered
  299  noncompete agreement.
  300  
  301  Any action regarding a restrictive covenant that does not meet
  302  the definition of a covered garden leave agreement or a covered
  303  noncompete agreement as provided in this part is governed by s.
  304  542.335.
  305         Section 3. This act shall take effect July 1, 2025.
  306  
  307  ================= T I T L E  A M E N D M E N T ================
  308  And the title is amended as follows:
  309         Delete everything before the enacting clause
  310  and insert:
  311                        A bill to be entitled                      
  312         An act relating to employment agreements; creating
  313         part I of ch. 542, F.S., entitled the “Florida
  314         Antitrust Act of 1980”; creating part II of ch. 542,
  315         F.S., entitled the “Florida Contracts Honoring
  316         Opportunity, Investment, Confidentiality, and Economic
  317         Growth (CHOICE) Act”; creating s. 542.41, F.S.;
  318         providing a short title; creating s. 542.42, F.S.;
  319         providing legislative findings; creating s. 542.43,
  320         F.S.; defining terms; creating s. 542.44, F.S.;
  321         providing applicability; providing that certain
  322         covered garden leave agreements are not a restraint of
  323         trade or an attempt to monopolize trade or commerce;
  324         providing notice requirements for covered garden leave
  325         agreements; providing that a covered employer may
  326         waive any portion of such notice requirements by
  327         providing a specified amount of advance written notice
  328         to the covered employee; providing that covered garden
  329         leave agreements do not affect other agreements;
  330         requiring a court to enter a preliminary injunction to
  331         stop covered employees, businesses, entities, or
  332         individuals if a breach of a covered garden leave
  333         agreement is alleged; authorizing the court to modify
  334         such an injunction if a covered employee, business,
  335         entity, or individual establishes certain information
  336         by clear and convincing evidence; requiring that
  337         certain information be provided to the court under
  338         seal; requiring the court to make presumptions of
  339         certain fact; providing that a prevailing covered
  340         employer is entitled to recover all available monetary
  341         damages for all available claims; providing that a
  342         prevailing party is entitled to reasonable attorney
  343         fees and costs; authorizing a covered employer to
  344         reduce the salary or benefits of a covered employee if
  345         he or she engages in gross misconduct; providing that
  346         such a reduction is not a breach of the covered garden
  347         leave agreement; creating s. 542.45, F.S.; providing
  348         applicability; providing that certain covered
  349         noncompete agreements are not a restraint of trade or
  350         an attempt to monopolize trade or commerce; providing
  351         notice requirements for covered noncompete agreements;
  352         providing that covered noncompete agreements do not
  353         affect other agreements; requiring a court to enter a
  354         preliminary injunction to stop covered employees,
  355         businesses, entities, or individuals if a breach of a
  356         covered noncompete agreement is alleged; authorizing
  357         the court to modify such an injunction if a covered
  358         employee, business, entity, or individual establishes
  359         certain information by clear and convincing evidence;
  360         requiring that certain information be provided to the
  361         court under seal; requiring the court to make
  362         presumptions of certain facts; providing that a
  363         prevailing covered employer is entitled to recover all
  364         available monetary damages for all available claims;
  365         providing that a prevailing party is entitled to
  366         reasonable attorney fees and costs; authorizing a
  367         covered employer to reduce the salary or benefits of a
  368         covered employee if he or she engages in gross
  369         misconduct; providing that such a reduction is not a
  370         breach of the covered noncompete agreement; providing
  371         construction regarding a restrictive covenant that
  372         does not meet the definition of a covered garden leave
  373         agreement or a covered noncompete agreement; providing
  374         an effective date.