Florida’s Strong Non-Compete Statute Stands Test in Court

1. Section 542.336 of the Florida Statutes nullifies certain non-compete agreements for physicians in the same county as their former employers.
2. It is unclear whether the statute applies to existing contracts or only those entered into after its effective date.
3. The statute does not clearly define what medical practices would be considered a specialty subject to the statute.
4. It is also unclear when the three-year period starts, after which non-competes subject to the statute can be enforced.
5. The statute’s impact on medical practices in rural counties or those with few physician practitioners is concerning. – 21st Century Oncology, Inc. sued the State of Florida over a new statute affecting non-compete agreements for physicians.
– The court ruled that the statute serves a legitimate public purpose and is not unconstitutional.
– Healthcare practices should review their existing non-competes to see how the new statute will affect them.
– Investors in new practices should consider the new statute when acquiring a practice and may want to offer other incentives to encourage practitioners to stay.

https://www.williamsparker.com/insights/monster-of-a-florida-non-compete-statute-survives-challenge/