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FL S1618
Bill
Status
Failed
3/14/2022
Primary Sponsor
Commerce and Tourism
Click for details
AI Summary
- Restrictive covenants (non-compete agreements) would only be enforceable against former employees, agents, or independent contractors who voluntarily resigned, were terminated for misconduct, or failed to meet pre-established reasonable performance standards or goals
- Resignations resulting from constructive termination are not considered voluntary, and terminations following substantial unanticipated changes in market conditions are not considered failures to meet performance standards
- "Misconduct" is broadly defined to include deliberate disregard of employer standards, repeated carelessness or negligence, chronic absenteeism, willful regulatory violations, employer rule violations, and criminal assault or abuse of persons in professional care
- The new restrictions do not invalidate covenants prohibiting disclosure of trade secrets and do not apply to restrictive covenants associated with the sale of business assets, corporate shares, partnership interests, or other equity interests
- The amended provisions apply to restrictive covenants entered into on or after July 1, 2022, with the prior framework continuing to govern covenants entered into between July 1, 1996, and June 30, 2022
Legislative Description
Restrictions on Employment
Last Action
Died in Judiciary
3/14/2022
Committee Referrals
Judiciary1/26/2022
Full Bill Text
No bill text available