Bill Text: FL S1618 | 2022 | Regular Session | Comm Sub

Bill Title: Restrictions on Employment

Spectrum: Bipartisan Bill

Status: (Failed) 2022-03-14 - Died in Judiciary [S1618 Detail]

Download: Florida-2022-S1618-Comm_Sub.html
       Florida Senate - 2022                             CS for SB 1618
       By the Committee on Commerce and Tourism; and Senator Broxson
       577-02260-22                                          20221618c1
    1                        A bill to be entitled                      
    2         An act relating to restrictions on employment;
    3         amending s. 542.335, F.S.; providing that restrictive
    4         covenants are only enforceable against a former
    5         employee, agent, or independent contractor who
    6         voluntarily resigned or was terminated for misconduct
    7         or failing to satisfy performance standards or goals;
    8         defining the term “misconduct”; providing
    9         applicability; providing an effective date.
   11  Be It Enacted by the Legislature of the State of Florida:
   13         Section 1. Subsection (3) of section 542.335, Florida
   14  Statutes, is amended, and subsection (4) is added to that
   15  section, to read:
   16         542.335 Valid restraints of trade or commerce.—
   17         (3)(a)A restrictive covenant is only enforceable against a
   18  former employee, agent, or independent contractor who
   19  voluntarily resigns, is terminated for misconduct, or does not
   20  satisfy reasonable performance standards or goals which were set
   21  in advance. The termination or resignation of an employee
   22  following a substantial unanticipated change in market
   23  conditions is not a termination for the failure to satisfy
   24  reasonable performance standards or goals. A resignation
   25  resulting from a constructive termination is not voluntary.
   26         (b)For purposes of this subsection, the term “misconduct”
   27  means all misconduct warranting involuntary termination,
   28  regardless of whether the misconduct occurs at the workplace or
   29  during working hours, and includes, but is not limited to, the
   30  following, which may not be construed in pari materia with each
   31  other:
   32         1.Conduct demonstrating conscious disregard of an
   33  employer’s interests and found to be a deliberate violation or
   34  disregard of the reasonable standards of behavior which the
   35  employer expects of his or her employee, agent, or independent
   36  contractor. Such conduct may include, but is not limited to,
   37  willful damage to an employer’s property that results in damage
   38  of more than $500, or theft of employer property or property of
   39  a customer or invitee of the employer.
   40         2.Carelessness or negligence to a degree or recurrence
   41  that manifests culpability or wrongful intent or shows an
   42  intentional and substantial disregard of the employer’s
   43  interests or of the employee’s, agent’s, or independent
   44  contractor’s duties and obligations to his or her employer.
   45         3.Chronic absenteeism or tardiness in deliberate violation
   46  of a known policy of the employer or one or more unapproved
   47  absences following a written reprimand or warning relating to
   48  more than one unapproved absence.
   49         4.A willful and deliberate violation of a standard or
   50  regulation of the state by an employee, agent, or independent
   51  contractor of an employer licensed or certified by the state,
   52  which violation would cause the employer to be sanctioned or
   53  have its license or certification suspended by the state.
   54         5.A violation of an employer’s rule, unless the employee,
   55  agent, or independent contractor can demonstrate that:
   56         a.He or she did not know, and could not reasonably know,
   57  of the rule’s requirements;
   58         b.The rule is not lawful or not reasonably related to the
   59  job environment and performance; or
   60         c.The rule is not fairly or consistently enforced.
   61         6.Committing criminal assault or battery on another
   62  employee, or on a customer or invitee of the employer, or
   63  committing abuse or neglect of a patient, resident, disabled
   64  person, elderly person, or child in her or his professional
   65  care.
   66         (c)This subsection does not invalidate a covenant that
   67  prohibits disclosing a trade secret of the employer to third
   68  parties.
   69         (d)This subsection does not apply to a restrictive
   70  covenant sought to be enforced against a former employee, agent,
   71  or independent contractor who is associated with the sale of all
   72  or a part of:
   73         1.The assets of a business or professional practice;
   74         2.The shares of a corporation;
   75         3.A partnership interest;
   76         4.A limited liability company membership; or
   77         5.An equity interest, of any other type, in a business or
   78  professional practice.
   79         (4)(a)Subsections (1) and (2) apply to restrictive
   80  covenants entered into on or after July 1, 1996, and before June
   81  30, 2022.
   82         (b)Subsection (3) applies to restrictive covenants entered
   83  into on or after July 1, 2022 This act shall apply
   84  prospectively, and it shall not apply in actions determining the
   85  enforceability of restrictive covenants entered into before July
   86  1, 1996.
   87         Section 2. This act shall take effect July 1, 2022.