A non-compete agreement is a contract between an employer and an employee. The signed agreement limits the employees’ future business opportunities. The healthcare provider may be prohibited from taking a position from a competitor within a specific geographic area. This limitation has a time limit. Additionally, an employee may be restricted from establishing private practice. Both employer and employee should consult an experienced healthcare attorney for assistance with non-compete agreements.
Specifically, questions regarding a non-compete contract’s enforcement require experienced legal counsel. The healthcare lawyers at Di Pietro Partners provide expertise in this complicated area of healthcare law.
Florida Law Regarding Non-Compete Agreements
Florida Statute 542.335 allows non-compete agreements if they meet certain criteria. The contract is enforceable if it is reasonable and protects business interests. In healthcare, business interests may include patient relationships, confidential information, and other medical information. The reasonable aspect may pertain to the duration of the non-compete. For example, a physician may not be forced to work at one hospital for an extremely long period of time.
Florida Statute 542.336 deals with monopolies. Your attorney will explain how a non-compete agreement may not be enforceable if only a single employer controls all physicians within a specialty.
Many states recently limited the enforcement of non-compete agreements. However, Florida continues to pass legislation promoting the contracts. The recently passed Choice Act on July 1, 2025 clearly shows Florida’s support for non-compete agreements. Although this act does not apply to healthcare, it indicates support for employer friendly non-compete law. Florida’s non-compete laws remain complex, especially for healthcare employers and employees. For this reason, contact an experienced healthcare litigation attorney for assistance with legal issues regarding non-compete agreements.
Physician Non-Compete Agreement Examples
Common provisions in physicians’ non-compete agreements may include:
- Geographic and time constraints: Physicians may not practice within a certain radius of current location for a specific number of years after leaving the organization.
- Agreement length: Contract length is generally 1-3 years.
- Specialty specific: If a physician is a board-certified specialist this may be reflected in the contract.
- Business financial interests: Buy-sell arrangements may be included, research patents may be part of the contract
Non-Compete Litigation for Employees
Litigation may be necessary when an employee wants to get out of a non-compete. Since Florida Law allows non-compete contracts, employees must seek legal advice. If a physician seeks to break a non-compete agreement the following steps may be followed:
- Hire an experienced healthcare litigation attorney
- Review the contract thoroughly with your attorney. Consider all the ramifications of terminating your employment. Specifically, look at the duration, geographic scope, and all clauses in your contract.
- Search for possible defenses under Florida Law with your attorney. The court may throw out the contract if it is overly broad or unreasonable. If your employer broke any part of the agreement inform your attorney.
- Attempt a negotiation if your attorney thinks this is a good idea.
Non-Compete Litigation for Employers
Florida Law allows non-compete agreements between healthcare employers and employees. For example, hospitals use non-compete agreements with physicians to protect their investment. Training and recruiting valuable staff remain extremely expensive. Other reasons may include protecting confidential information, providing consistent patient care, and other reasons.
As a result, when a highly regarded, well-trained staff member wants to break a non-compete agreement, the employer may choose to litigate the matter. In this case, the employer must hire a skilled healthcare attorney with litigation expertise.
To sum up, Di Pietro Partners’ highly experienced legal and medical staff are well suited to successfully handle your case.
Florida Healthcare Non-Compete FAQ
- Q. Are physician non-compete agreements enforceable in Florida?
Yes, physician non-compete agreements are generally enforceable under Florida Statute 542.335, provided they are reasonable in time, geography, and scope, and protect legitimate business interests such as patient relationships or confidential medical information. Courts may strike down overly broad restrictions. - Q. How long can a physician non-compete agreement last in Florida?
Most agreements range from 1 to 3 years, though courts evaluate reasonableness case by case. Longer restrictions may be enforceable in certain circumstances, but agreements that unfairly prevent a physician from practicing their specialty are more likely to be challenged. - Q. Can a physician fight a non-compete agreement in Florida?
Yes. A physician may challenge an agreement if it is overly broad, lacks a valid business interest, or creates a monopoly in a specialty area (as addressed under Florida Statute 542.336). Courts may also refuse to enforce agreements that harm patient access to care. - Q. Do hospitals and medical groups often litigate non-compete agreements?
Yes. Hospitals and group practices frequently pursue litigation to enforce non-compete clauses against departing physicians. They argue these agreements protect investments in recruitment, training, and patient relationships. Skilled legal counsel is essential for both sides. - Q. Can a non-compete agreement prevent a physician from opening a private practice?
Potentially, yes. Many agreements restrict physicians from practicing within a certain radius of their former employer or from starting a competing practice for a set period. The enforceability depends on whether the restriction is considered reasonable and tied to legitimate business interests. - Q. Should physicians consult a lawyer before signing or breaking a non-compete agreement?
Absolutely. Non-compete clauses carry major career and financial consequences. Both physicians and employers should consult an experienced healthcare attorney to understand their rights, potential defenses, and litigation strategies. - Q. Do non-compete agreements apply to all healthcare providers or only physicians?They can apply to a wide range of licensed healthcare professionals, including nurses, pharmacists, physician assistants, dentists, and specialists. Florida law allows healthcare employers to enforce these agreements so long as they meet the statutory requirements of being reasonable in time, scope, and geography.
- Q. How do non-competes impact medical practices and healthcare businesses?
Non-competes can restrict the ability of employees to join competing practices or start their own, which helps employers protect referrals, confidential information, and financial investments. For employees, however, they can limit career mobility and future earnings if not carefully negotiated. - Q. What is the typical geographic restriction in a healthcare non-compete?
The most common restriction is a mile radius around the facility or office location. For example, a physician in Miami may be prohibited from practicing within 10–20 miles of their former employer. In larger metropolitan areas like Fort Lauderdale or West Palm Beach, broader restrictions are more likely to be upheld because patients still have many care options. By contrast, in smaller communities such as Fort Myers or Jacksonville Beach, a similar restriction could be considered unreasonable if it significantly limits access to care. Ultimately, enforceability depends on the local market size, availability of providers, and impact on patient access.