HB 1449 2022
CODING: Words stricken are deletions; words underlined are additions.
hb1449-00
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to invalid restrictive covenants in 2
health care; amending s. 542.336, F.S.; defining the 3
terms "hospital" and "physician"; specifying that 4
certain restrictive covenants in employment agreements 5
between physicians and hospitals do not support a 6
legitimate business interest; authorizing a party to 7
an employment agreement to elect to have a mutually 8
agreed upon arbitrator make a specified bindin g 9
determination; providing a legislative finding; 10
providing applicability; providing an effective date. 11
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Be It Enacted by the Legislature of the State of Florida: 13
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Section 1. Section 542.336, Florida Statutes, is amended 15
to read: 16
542.336 Invalid restrictive covenants. — 17
(1) As used in this section, the term: 18
(a) "Hospital" means a hospital as defined in s. 19
395.002(13) which is licensed under chapter 395 and part II of 20
chapter 408. 21
(b) "Physician" means a person licensed to practice 22
medicine under chapter 458 or osteopathic medicine under chapter 23
459. 24
(2) A restrictive covenant entered into with a physician 25
HB 1449 2022
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hb1449-00
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
who is licensed under chapter 458 or chapter 459 and who 26
practices a medical specialty in a county wherein one entity 27
employs or contracts with, either directly or through related or 28
affiliated entities, all physicians who practice such specialty 29
in that county is not supported by a legitimate business 30
interest. The Legislature finds that such covenants restrict 31
patient access to physicians , increase costs, and are void and 32
unenforceable under current law. Such restrictive covenants 33
shall remain void and unenforceable for 3 years after the date 34
on which a second entity that employs or contracts with, either 35
directly or through related or aff iliated entities, one or more 36
physicians who practice such specialty begins offering such 37
specialty services in that county. 38
(3) A restrictive covenant in an employment agreement 39
between a physician and a hospital is not supported by a 40
legitimate business interest if it does not include an option 41
for the physician to buy out of the restrictive covenant at a 42
reasonable price. Any party to an employment agreement which 43
believes that the price to buy out of the restrictive covenant 44
in the agreement is unreas onable may elect to have a mutually 45
agreed upon arbitrator determine a reasonable price, and such 46
arbitrator's decision is binding on the parties. The Legislature 47
finds that a restrictive covenant without this option limits 48
patient access to physicians and increases costs and is void and 49
unenforceable. This subsection applies to restrictive covenants 50
HB 1449 2022
CODING: Words stricken are deletions; words underlined are additions.
hb1449-00
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
entered into on or after July 1, 2022. 51
Section 2. This act shall take effect July 1, 2022. 52