Florida restrictive covenant agreements, whether standalone, contained in an employment agreement or as part of a medical practice purchase and sale agreement, are governed by Chapter 542, Florida Statutes. Historically, noncompete agreements have been enforceable against physicians as long as the agreements were supported by a legitimate business interest and reasonably limited in geographical scope and time. Gov. Ron DeSantis, however, recently signed into law a new section of the statute that prohibits restrictive covenant agreements, and voids existing restrictive covenant agreements, for physicians who practice a “medical specialty” in a county where all physicians in that medical specialty are employed by the same entity or its affiliates.

Effective June 25, newly enacted Florida Statutes Section 542.336 prohibits a restrictive covenant agreement between a physician who practices a medical specialty, and an entity that employs or contracts with, either directly or through an affiliated entity, all physicians who practice the specialty within the same county. The law voids any existing physician noncompete agreements that meet this criteria. The new law also provides that the restrictive covenant shall remain void and unenforceable for a three-year period following the entry of a second employer to the market that, either directly or through related or affiliated entities, employs one or more physicians who practice the same medical specialty. The statute expressly states that such restrictive covenants are void and unenforceable because the agreements are not supported by a legitimate business interest and do not benefit patients, as they restrict access to physicians and increase the cost of health care. The law was upheld by the U.S. District Court for the Northern District of Florida. See 21st Century Oncology v. Moody, No. 4:19-cv-00298-MW-CAS, 2019 WL 3948099 (N.D. Fla. Aug. 21, 2019).