Ken Griffin’s Citadel is playing a key role in backing legislation in Florida that would permit non-compete clauses and garden leave periods lasting up to four years in the state, according to a report by Bloomberg.
The bill, which has already passed the Florida legislature and awaits Governor Ron DeSantis’s signature, targets high-earning professionals – those making at least twice the average local wage, or over $140,000 in most urban areas. It proposes allowing employers to block defecting staff from working in similar roles or joining competitors for up to four years. The legislation would also streamline injunctions to prevent staff from immediately starting similar work, shifting the legal burden in favour of the employer.
While the measure isn’t limited to the financial sector, hedge funds have taken keen interest given the intensifying talent wars and poaching risks, particularly in Florida, now a magnet for money managers. Citadel’s lobbying team reportedly helped shape the bill and coordinated with broader pro-business coalitions including the Associated Industries of Florida.
Critics argue the bill heavily favours employers and could chill mobility and innovation within the investment industry. “It sways the deck in favour of the incumbent employer,” said Sam Peak of the Economic Innovation Group. Employment lawyer James Valentino added that such lengthy restrictions could “limit marketability” and stall careers.
The measure would also legitimise garden leave arrangements, whereby firms pay base salaries – but not bonuses – while sidelining employees. For hedge funds, where annual compensation can be dominated by deferred bonuses and performance payouts, this tool could offer a powerful deterrent against departures without fully cutting ties.
Citadel has already extended non-competes for some portfolio managers to 21 months, per prior reports, and has been aggressive in enforcing trade-secret protections. Its securities arm is currently suing former employees who launched a competing crypto venture.
The proposal emerges amid broader national scrutiny of non-competes. While the Federal Trade Commission recently attempted to restrict such agreements, legal challenges have stalled those efforts, prompting states like Florida to pursue their own employer-friendly frameworks.
