Florida Senate - 2022 SB By Senator Broxson 1-00675A-22 20221618__ CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled

An act relating to restrictions on employment; 2 amending s. 542.335, F.S.; providing that restrictive covenants are only enforceable against a former employee, agent, or independent contractor who voluntarily resigned or was terminated because of misconduct; defining the term “misconduct”; providing applicability; providing an effective date. 8

Be It Enacted by the Legislature of the State of Florida: 10

Section 1. Subsection (3) of

section 542.335, Florida Statutes, is amended, and subsection (4) is added to that section, to read: 14 542.335 Valid restraints of trade or commerce.— 15 (3)(

a) A restrictive covenant is only enforceable against a former employee, agent, or independent contractor who voluntarily resigns or is terminated because of misconduct. A resignation resulting from a constructive termination is not voluntary. 20

(

c) This subsection does not invalidate a covenant that prohibits disclosing a trade secret of the employer to third parties. 63

(

d) This subsection does not apply to a restrictive covenant sought to be enforced against a former employee, agent, 65 or independent contractor who is associated with the sale of all or a part of: 67 1. The assets of a business or professional practice; 68 2. The shares of a corporation; 69 3. A partnership interest; 70 4. A limited liability company membership; or 71 5. An equity interest, of any other type, in a business or professional practice. 73 (4)(a) Subsections (1) and (2) apply to restrictive covenants entered into on or after July 1, 1996, and before June 75 30, 2022. 76

(b) Subsection (3) applies to restrictive covenants entered into on or after July 1, 2022 This act shall apply prospectively, and it shall not apply in actions determining the enforceability of restrictive covenants entered into before July 80 1, 1996. 81

Section 2. This act shall take effect July 1, 2022. 82