Key Takeaways
- • KKR & Co. has barred non-compete agreements for employees earning under $100,000 a year at its US portfolio companies, covering both existing and new contracts.
- • KKR is no longer enforcing existing non-competes for these lower-paid workers, according to Pete Stavros, the firm's co-head of global private equity.
- • The firm aims to extend the policy to employees earning more than $100,000 over time, per Stavros.
- • The move is intended to demonstrate that restrictive covenants are not necessary for portfolio companies to remain competitive.
Summary
KKR & Co. has prohibited non-compete agreements for lower-paid employees at its US portfolio companies, according to Bloomberg. The policy is designed to show that restrictive employment contracts are not required for firms to stay competitive, the report said.
Workers earning less than $100,000 a year at companies owned by KKR are no longer subject to non-competes, Pete Stavros, the firm's co-head of global private equity, said in an interview with Bloomberg. Under the policy, KKR has banned enforcement of existing non-competes as well as the use of new ones for this employee group. Stavros said the firm intends to expand the policy over time to employees earning more than $100,000.
The decision comes amid a broader debate over non-compete restrictions in the United States. Federal efforts to restrict such clauses have been unsettled: the Federal Trade Commission's 2024 rule banning most non-competes was stopped by a district court order on August 20, 2024, and is not in effect. Several states have moved independently, including Washington, where essentially all existing non-compete agreements will become void for Washington-based workers starting June 30, 2027. KKR's policy applies at the portfolio company level and is a voluntary private-sector measure rather than a response to a regulatory mandate.
Workers earning less than $100,000 a year at companies owned by KKR are no longer subject to non-competes, Pete Stavros, the firm's co-head of global private equity, said in an interview with Bloomberg. Under the policy, KKR has banned enforcement of existing non-competes as well as the use of new ones for this employee group. Stavros said the firm intends to expand the policy over time to employees earning more than $100,000.
The decision comes amid a broader debate over non-compete restrictions in the United States. Federal efforts to restrict such clauses have been unsettled: the Federal Trade Commission's 2024 rule banning most non-competes was stopped by a district court order on August 20, 2024, and is not in effect. Several states have moved independently, including Washington, where essentially all existing non-compete agreements will become void for Washington-based workers starting June 30, 2027. KKR's policy applies at the portfolio company level and is a voluntary private-sector measure rather than a response to a regulatory mandate.
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