Fla. Supreme Court: HHC Referral Sources Protected Legitimate Business Interest

In a new case focusing on employment noncompete agreements in the home health care (HHC) industry, the Florida Supreme Court unanimously held that HHC referral sources can be a protected legitimate business interest under Fla. Stat. 542.335, sufficient to support a restriction on competition in a contract.

The Sept. 14, decision White v. Mederi Caretenders Visiting Services of Southeast Florida, is anticipated to have even broader implications beyond the HHC industry because, in Florida, a restrictive covenant contained in an employment contract must involve a “legitimate business interest,” as defined by the statute, to be enforceable. The definition of “legitimate business interest” under Fla. Stat 542.335 includes, but is not limited to:

• Trade secrets, as defined in s. 688.002(4);
• Valuable confidential business or professional information that otherwise does not qualify as trade secrets;
• Substantial relationships with specific prospective or existing customers, patients, or clients;
• Customer, patient or client goodwill associated with: an ongoing business or professional practice, by way of trade name; trademark, service mark, or “trade dress”; a specific geographic location; or a specific marketing or trade area.
• Extraordinary or specialized training.