EIG Media Contact: Reuben Francis | [email protected]
Washington, D.C. – The Economic Innovation Group (EIG) strongly opposes Florida’s CHOICE Act and joins a growing coalition of experts and organizations urging Governor Ron DeSantis to veto the legislation.
“The CHOICE Act would codify one of the most anti-innovation, anti-startup, and anti-worker policies to be found anywhere in the country,” said John Lettieri, President and CEO of the Economic Innovation Group. “While dozens of other states are enacting limitations on the use of noncompete agreements, this legislation would take Florida in the opposite direction — locking in talent, stifling wage growth, and undermining efforts to build a cutting-edge startup ecosystem in the Sunshine State.”
The bill would enact sweeping changes to Florida’s noncompete law, including:
- Eliminating the requirement that employers demonstrate a “legitimate business interest” (such as protecting trade secrets) before enforcing a noncompete;
- Codifying the duration of noncompete agreements to last as long as four years, making it the longest duration of any state’s policy in the country;
- Requiring courts to issue preliminary injunctions that prevent individuals from working if the former employer merely claims that the individual is engaging in competitive activity.
Such measures would significantly restrict labor mobility and entrepreneurship. Extensive economic research has shown that strict enforcement of noncompete agreements leads to diminished innovation, lower wages for workers, and fewer startup businesses.
As one of the fastest-growing states in the country, Florida should be focused on policies that empower workers and support innovation. EIG urges Governor DeSantis to veto the CHOICE Act and champion reforms that curtail the abuse of noncompete clauses to attract even more prosperity and dynamism to the Sunshine State.
Read the coalition letter urging Governor DeSantis to veto the CHOICE Act here.
About the Economic Innovation Group (EIG)
The Economic Innovation Group (EIG) is a bipartisan public policy organization dedicated to forging a more dynamic and inclusive American economy. Headquartered in Washington, DC, EIG produces nationally-recognized research and works with policymakers to develop ideas that empower workers, entrepreneurs, and communities.
