In 2019, Florida law shifted regarding physician related noncompetition agreements. The Florida legislature unanimously passed a law, that Gov. Ron DeSantis then promptly signed, that changed the legal playing field in physician-related noncompetition agreements. Basically, the statute invalidates physician noncompetes in counties where only one employer employs all the medical specialists in that county. Consistent with steps taken by many other states that have invalidated noncompetes for health care providers, Florida’s decision is significant because it signals an emerging shift toward a ban on noncompetes for physicians and potentially others.

Historically, in Florida, noncompetes have been enforced so long as they had a reasonable scope in terms of geography and time, and supported a legitimate business interest. The newly enacted Florida Statute Section 542.336 purportedly addressed the negative impacts of the emerging trends in healthcare consolidation, which some argue have led to minimized access to specialists and increased costs. The statute clarifies existing Florida law on physician-related noncompetes and nullifies those that prohibit physicians from competing with their former employer if that employer employs, or otherwise contracts with, every other physician with that specialty in that county. Those noncompetes are void and unenforceable for three years after another employer competes in that county by offering services in the same specialty.