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2025 Florida Statutes

Title XXXIII REGULATION OF TRADE, COMMERCE, INVESTMENTS, AND SOLICITATIONS
Chapter 542 COMBINATIONS RESTRICTING TRADE OR COMMERCE Entire Chapter
SECTION 43
Definitions.
F.S. 542.43
1542.43 Definitions.—For the purposes of this part, the term:
(1) “Annual mean wage of employees in Florida” or “annual mean wage” means the most recent annual mean wage as calculated by the United States Department of Labor, Bureau of Labor Statistics, or its successor calculation, for all occupations in this state.
(2) “Benefit” means access to health insurance, life insurance, or disability insurance that is the same as or similar to the insurance that a covered employee had access to and at the same cost to that employee during the month before the commencement of his or her notice period.
(3) “Covered employee” means an employee or individual contractor who earns or is reasonably expected to earn a salary greater than twice the annual mean wage of the county in this state in which the covered employer has its principal place of business, or the county in this state in which the employee resides if the covered employer’s principal place of business is not in this state. The term does not include a person classified as a health care practitioner as defined in s. 456.001.
(4) “Covered employer” means an entity or individual who employs or engages a covered employee.
(5) “Covered garden leave agreement” means a written agreement, or part of a written agreement, between a covered employee and covered employer in which:
(a) The covered employee and covered employer agree to up to, but no more than, 4 years of advance, express notice before terminating the employment or contractor relationship;
(b) The covered employee agrees not to resign before the end of such notice period; and
(c) The covered employer agrees to retain the covered employee for the duration of such notice period and to continue paying the covered employee the same salary and providing the same benefits that the covered employee received from the covered employer in the last month before the commencement of the notice period. The covered employer is not obligated to provide discretionary incentive compensation or benefits or have the covered employee continue performing any work during the notice period.
(6) “Covered noncompete agreement” means a written agreement, or a portion of a written agreement, between a covered employee and a covered employer in which, for a period not to exceed 4 years and within the geographic area defined in the agreement, the covered employee agrees not to assume a role with or for another business, entity, or individual:
(a) In which the covered employee would provide services similar to the services provided to the covered employer during the 3 years preceding the noncompete period; or
(b) In which it is reasonably likely the covered employee would use the confidential information or customer relationships of the covered employer.
(7) “Noncompete period” means the time from the covered employee’s termination of employment through the end of the agreed-upon postemployment period of noncompetition as set forth in the covered noncompete agreement.
(8) “Notice period” means the date from the covered employee’s or covered employer’s written notice of intent to terminate the covered employee’s employment through the date of termination as set forth in a covered garden leave agreement.
(9) “Primary place of work” means the location where the covered employee spends more work time than any other single workplace.
(10) “Salary” means the base compensation, calculated on an annualized basis, which a covered employer pays a covered employee, including a base wage, a salary, a professional fee, or other compensation for personal services, and the fair market value of any benefit other than cash. Salary does not include health care benefits, severance pay, retirement benefits, expense reimbursement, distribution of earnings and profits not included as compensation for personal services, discretionary incentives or awards, or anticipated but indeterminable compensation, including tips, bonuses, or commissions.
History.—s. 2, ch. 2025-213.
1Note.—Created by s. 2, ch. 2025-213, effective July 1, 2025, per s. 22, ch. 2025-213. Chapter 2025-213 became law without the Governor’s signature on July 3, 2025, per s. 8(a), Art. III of the State Constitution. In Re Advisory Opinion to the Governor Request of June 29, 1979, 374 So. 2d 959 (Fla. 1979), specifies the constitutional effective date in s. 9, Art. III of the State Constitution in this situation. The constitutional effective date is August 15, 2025, for ch. 2025-213.