Florida Lawmakers Propose Ban on Doctor Contracts that Limit Job Options

– Florida Legislature is considering two bills that may significantly reduce or eliminate the enforceability of noncompete agreements against physicians in the state.
– Currently, noncompete agreements are enforceable in Florida under certain conditions, but the proposed bills could change this.
– If the bills are enacted, all physician noncompete agreements, existing and future, may become unenforceable, except for certain exceptions outlined in the bills. – House Bill 11 targets only noncompete restrictions for physicians in Florida.
– The bill aims to make all physician noncompete agreements void and unenforceable.
– It would do so by amending the RC Statute to eliminate noncompete agreements due to lack of legitimate business interest. – Senate Bill 458, introduced by Sen. Jason Brodeur, proposes to preserve the current prohibition of the RC Statute and make amendments to add a new blanket prohibition with three exceptions.
– The bill would only apply to noncompete agreements entered into on or after July 1, 2024, and not retroactively.
– The bill exempts noncompete agreements related to physician research, agreements with high-earning physicians, and agreements with physician-owners of medical businesses.
– The bill is currently with the Senate Rules Committee and has received unanimous approvals from the Health Policy Committee and the Commerce and Tourism Committee.
– Employers and healthcare investors should monitor the progress of the bill and consider alternative protections in preparation for its potential passage. – The information in the alert is not meant to be used as the sole source of information when analyzing and resolving a legal problem, and should not be substituted for legal advice.
– The laws of each jurisdiction are different and constantly changing, so the information may not be applicable in every situation.
– Receipt of this information does not create an attorney-client relationship.
– For specific questions regarding a particular fact situation, it is advised to consult the authors of the publication, a Holland & Knight representative, or other competent legal counsel.

https://www.hklaw.com/en/insights/publications/2024/02/florida-legislature-proposes-ban-on-physician-noncompete-agreements