CS for CS for SB 458 — Invalid Restrictive Covenants in Health Care

• Restrictive covenants that prevent physicians licensed under Florida law from practicing medicine in any geographic area for any period after termination of a contract, employment, or professional relationship are declared void and unenforceable as not supported by a legitimate business interest

• Exempts physicians earning at least $250,000 per year in total compensation (including wages, bonuses, benefits, salary, or attributed business income) from the restrictive covenant ban

• Exempts restrictive covenants related to physician-conducted research, provided the covenant does not impair continuing care and treatment of specific patients involved in that research

• Exempts physicians with ownership interests who sell the goodwill, ownership stake, or assets of a medical business, practice, or management services organization, allowing non-compete agreements reasonably necessary to protect the acquiring party's legitimate business interest

• Applies to restrictive covenants entered into on or after July 1, 2024, and retains existing law voiding non-competes in counties where a single entity employs or contracts with all physicians in a given specialty