Citadel’s Push for Four-Year Non-Competes Reshapes Florida’s Employment Landscape

In a significant shift that could redefine employment relationships across Florida, hedge fund giant Citadel has successfully lobbied for legislation allowing employers to enforce non-compete agreements for up to four years—double the previous limit. The “Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth” (CHOICE) Act, set to take effect July 1, 2025, represents one of the nation’s most employer-friendly approaches to restrictive covenants.

Citadel, led by billionaire Ken Griffin, has been a driving force behind the legislation. The firm, which relocated its headquarters from Chicago to Miami in 2022, has a vested interest in strengthening non-compete enforcement. According to Bloomberg, Citadel has been actively lobbying Florida lawmakers to extend non-compete durations, reflecting the company’s own practices.

“Citadel has been pushing for these changes to protect its business interests,” an industry analyst told Bloomberg. “The firm already enforces some of the financial industry’s longest non-compete periods.”

The new law establishes a presumption of validity for non-compete agreements that meet basic statutory requirements, including providing employees seven days to review the agreement with an attorney. Notably, the legislation shifts the burden of proof to employees, requiring them to establish “by clear and convincing evidence” that they won’t be competing with their former employer or using confidential information in new roles.

Timothy Canney, Partner at Bulman, Dunie, Burke & Feld, highlighted on LinkedIn the far-reaching implications: “The statute explicitly provides that it will apply ‘regardless of any applicable choice of law provisions’ contained in the agreement.” This provision could create complex jurisdictional questions for remote workers or those relocating to states with more restrictive non-compete laws.

The CHOICE Act emerges against a backdrop of increasing federal scrutiny of non-compete agreements. The Federal Trade Commission had attempted to ban such agreements nationwide earlier in 2024, but court challenges in Texas and Florida resulted in permanent injunctions blocking the rule. According to Arnold Lee, a commercial litigation attorney, the FTC has since paused its appeals until July 2025, creating a period of uncertainty in non-compete enforcement.

Critics argue the new Florida law goes too far in favoring employer interests. Christian Rodriguez, a partnership disputes litigator, described the changes as “radical” on LinkedIn, noting the law removes geographic limitations on non-competes and requires courts to “strictly enforce” such agreements.

“This is not an exaggeration,” Rodriguez wrote. “For those companies in Florida who were dreading the FTC’s effort to ban non-competes, the Florida legislature has enacted the CHOICE Act. This law makes Florida one of the most non-compete and employer-friendly states in the country.”

The legislation also introduces “garden leave agreements” to Florida, a concept common in financial services that requires employees to remain on payroll during non-compete periods while prohibiting them from working elsewhere.

As businesses prepare for the law’s implementation, legal experts anticipate increased litigation over non-compete enforcement, particularly involving employees who move between states with conflicting approaches to such agreements. The law’s extraterritorial reach could create complex legal challenges that may ultimately require federal intervention to resolve.