The referral sources for home health care companies can be protected by noncompete agreements because they qualify as a legitimate business interests under the state law on restrictive covenants in contracts, the Florida Supreme Court ruled.

In a decision that resolved a split between District Courts of Appeal on whether referral sources meet the definition of a “legitimate business interest” under a 2016 law, the high court ruled they can qualify “depending upon the context and proof adduced.”

“There is an indispensable relationship between referral sources [for home health care companies] and their undisputed legitimate business interests in relationships with patients” protected by Section 542.335(1)(b)3, Justice R. Fred Lewis wrote for the unanimous court. “Likewise, it may be noted that referral sources are somewhat analogous to customer goodwill, which is expressly protected.”