Florida Senate - 2025 COMMITTEE AMENDMENT Bill No. CS for SB 922 Ì839748^Î839748 LEGISLATIVE ACTION Senate . House Comm: RCS . 04/02/2025 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— 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.” 12 542.41 Short title.—This part may be cited as the “Florida 13 Contracts Honoring Opportunity, Investment, Confidentiality, and 14 Economic Growth (CHOICE) Act.” 15 542.42 Legislative 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. 30 542.43 Definitions.—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. 100 542.44 Covered 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. 207 542.45 Covered 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.