Protecting Your Business Relationships in Florida

– Non-compete agreements in Florida are governed by Section 542.335 of the Florida Statutes.
– Referral sources and patient and customer lists can be legitimate business interests warranting protection under Florida law.
– The statute defines “legitimate business interest” to include trade secrets, confidential business information, relationships with customers, patient or client goodwill, and specialized training.
– Patient lists and business referrals are among the legitimate business interests warranting protection in Florida. 1. The Court in White concluded that referral sources in the home health service arena were protected as legitimate business interests under Florida Statutes.
2. The Court likened the employers’ interest in their referral sources to customer goodwill, which is specifically protected under the statute.
3. The court in Ansaarie analyzed whether a physician was prohibited from soliciting his former employer’s prospective and existing patients and referral sources. – The former employer in Ansaarie demonstrated a legitimate business interest in its existing patients and referral sources.
– The employer provided evidence of substantial investments in developing its patient base and goodwill.
– Florida courts analyze non-enumerated business interests in non-compete agreement disputes.
– Courts must engage in fact-specific determinations when construing non-enumerated interests.
– Litigants should be prepared to meet the factual inquiry head-on in non-compete agreement disputes.

https://www.jimersonfirm.com/blog/2020/06/florida-non-compete-referral-sources-patient-lists/