SB 942 – Invalid Restrictive Covenants in Health Care

• Declares that non-compete (restrictive covenant) agreements with physicians licensed under Florida law that restrict them from practicing medicine in any geographic area for any period after termination of employment, contract, or professional relationship are 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 non-compete ban
• Exempts restrictive covenants related to physician-conducted research, provided the covenant does not impair continuing care 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 and agree to a geographically reasonable non-compete with the buyer
• Applies to restrictive covenants entered into on or after the effective date of July 1, 2025