An Intentionally Broad Scope
The Act applies to any agreement between “covered employers” and “covered employees,” although the latter is specifically defined as including independent contractors. The scope of the Act is intentionally broad: a “covered employee” is any individual earning or expected to earn a salary greater than twice the annual mean wage of the Florida county (1) in which the employer has its principal place of business or (2) where the employee resides, if the employer’s principal place of business is outside Florida. That annual mean wage threshold does not include anything other than base compensation, and is based on statistics published by the U.S. Department of Labor Bureau of Labor Statistics each year. In 2024, depending on the applicable county, that income threshold would range from roughly $80,000 to just under $150,000. A “covered employer” is simply any person or entity that employs (or, in the case of independent contractors, engages) a “covered employee.” Beyond that salary threshold, the Act further requires any covered agreement (whether a garden leave or non-compete restriction) to:
- be expressly governed by Florida law;
- advise the employee in writing of their right to seek counsel prior to execution of the agreement;
- be provided to the employee at least 7 days before offer of employment expires (for new hires) or before the offer to enter into the agreement expires (current employees); and
- have the employee acknowledge in writing their...
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