Ken Griffin’s Citadel is pushing for a new law in Florida that would allow employers to enforce four-year non-compete agreements and garden leave for high-earning employees. This proposed legislation has moved swiftly through the state legislature and is now awaiting the governor’s approval. Supporters argue that it will help keep companies competitive by preventing key employees from jumping to rival firms.
The bill targets individuals earning at least double the average local wage, which is typically over $140,000 in urban areas. If passed, it will enable companies to block former employees from taking similar jobs or using insider information for four years after they leave. It also aims to speed up court decisions that would prevent employees from moving to competing businesses.
Citadel’s lobbyists played a significant role in shaping this bill, working alongside other business groups to advocate for it. This effort reflects Griffin’s growing influence in Florida, where he has established himself as a prominent figure in the financial sector since relocating Citadel’s headquarters from Chicago to Miami.
Proponents of the bill see it as a necessary measure to protect businesses, especially in light of recent discussions around non-compete agreements at the federal level. The Federal Trade Commission had attempted to limit such agreements last year, but that effort was paused by a court ruling, and the agency is currently appealing.
As hedge funds and other financial firms flock to Florida, competition for talent has intensified. Many companies are concerned about losing employees to rivals who offer attractive bonuses and buyouts. Citadel has already extended its non-compete agreements for some employees to as long as 21 months, a significant increase from the average one year in 2020.
The proposed legislation also includes provisions for "garden leave," where employers would continue to pay departing employees while sidelining them from work. This would allow companies to maintain some control over their former employees without having to pay bonuses, which can be substantial in the hedge fund industry.
Currently, Florida’s non-compete laws are somewhat vague, giving judges discretion in interpreting the reasonableness of these agreements. The new bill seeks to clarify these rules and make it easier for employers to enforce non-compete clauses, shifting the burden of proof in their favor.
Critics of the bill have raised concerns about its implications for workers. They argue that such restrictions can hinder career growth and limit opportunities for employees seeking new roles. Some lawmakers have questioned whether the bill primarily serves the interests of wealthy individuals like Griffin rather than the broader business community.
As the bill awaits the governor’s signature, its potential impact on Florida’s labor market and its reputation as a business-friendly state remains to be seen.