Physician Non-Compete Agreements in Florida

Florida law permits physician non-compete agreements, provided they satisfy specific statutory conditions. The enforceability of such agreements is primarily governed by Fla. Stat. § 542.335, which establishes general requirements for non-compete clauses, and Fla. Stat. § 542.336, which imposes a targeted restriction in cases of county-level specialty monopolization.

I. Statutory Framework: Sections 542.335 and 542.336

Pursuant to Fla. Stat. § 542.335(1), a restrictive covenant is enforceable only if it is (1) reasonable in time, area, and line of business; and (2) protects one or more “legitimate business interests.” Legitimate business interests commonly recognized include patient relationships, trade secrets, confidential business information, and goodwill.

In 2019, the Florida Legislature enacted Fla. Stat. § 542.336, which renders non-compete agreements void and unenforceable when all physicians in a particular specialty within a given county are employed or contracted by a single entity or affiliated group. This statutory limitation continues for three years after a second unaffiliated employer begins offering services in the same specialty and county.

II. Judicial Treatment and Constitutionality

The Northern District of Florida upheld the constitutionality of § 542.336 in 21st Century Oncology, Inc. v. Moody, 2019 WL 3948099 (N.D. Fla. Aug. 21, 2019), affirming the law’s public policy rationale—specifically, ensuring access to healthcare and preventing de facto monopolies in physician services.

The court emphasized that the statute is triggered based on objective market conditions—whether a single employer dominates a specialty in a given county—regardless of the judicial forum. The court also accepted its retroactive application, holding that § 542.336 could invalidate a previously enforceable non-compete when monopoly conditions later emerged.

Conversely, when no monopoly situation is presented, courts have upheld the enforceability of  non-competes against physicians. Courts have consistently applied these statutes, regardless of the district in which a case has been filed.

Conclusion

Florida law allows physician non-compete agreements subject to compliance with Fla. Stat. § 542.335. However, under Fla. Stat. § 542.336, such agreements become unenforceable in counties where a single employer controls all physicians in a specialty. This framework promotes fair competition and patient access while preserving legitimate business protections in competitive markets.

Facing a Non-Compete in Florida? Get Legal Guidance Now.

The attorneys at Howell, Buchan & Strong are among the nation’s leading advocates for medical professionals; providing tailored solutions to help physicians navigate non-compete agreements.

Florida’s non-compete laws are complex, especially for physicians. Our experienced healthcare attorneys can:

• Review your contract,
• Assess your rights, and
• Help you move forward with confidence.

If you’re unsure whether your agreement is enforceable or affected by recent legal developments, contact our office.