KKR Banned Non-Compete Clauses for Lower-Paid Staff

The investment firm implemented a policy in 2025 prohibiting non-compete agreements for staff earning under $100,000.

Updated on Oct. 12, 2026 in Human Resources

KKR Banned Non-Compete Clauses for Lower-Paid Staff

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Should companies be prohibited from using non-compete clauses for employees?

In 2025, KKR formalized a policy banning non-compete agreements for employees earning less than $100,000 annually across its U.S. portfolio companies. This mandate applies to both new employment agreements and the enforcement of existing restrictive clauses.

Why it matters

KKR stated that it believes non-compete restrictions can suppress wages and intends to show that businesses can remain competitive without limiting a worker's future employment opportunities. The move follows a 2024 attempt by the Federal Trade Commission to ban such agreements nationwide, which was blocked by legal challenges.

KKR portfolio companies collectively employ more than 800,000 people across the United States. Since 2011, approximately 40,000 employees have received more than $2 billion through the firm's ownership programme, which currently includes 90 companies.

The players

KKR

KKR is a global investment firm that manages a diverse range of alternative asset classes, including private equity and credit, through various portfolio companies.

Federal Trade Commission

The Federal Trade Commission is an independent agency of the United States government tasked with promoting consumer protection and eliminating anticompetitive business practices.

United States Chamber of Commerce

The United States Chamber of Commerce is a large business advocacy group that represents the interests of companies and associations before the federal government.

The details

The firm began reviewing its use of non-compete agreements after evaluating a pet retailer and subsequently directed portfolio company chief executives to consult with KKR before enforcing such restrictions starting in 2024. The initiative aims to align corporate practices with the firm's goal of fostering flexible employment markets.

The firm launched an ownership stake program for employees in 2011.
The FTC attempted to ban non-compete agreements in 2024.
KKR formalized the policy banning non-compete agreements in 2025.

Market Landscape

This policy change aligns KKR with broader efforts to increase labor market mobility, positioning the firm as a leader among private equity investors regarding internal employment standards. It follows the failed 2024 national effort to ban non-competes, which was stalled by the United States Chamber of Commerce.

Employees at KKR-owned companies earning under $100,000 may see greater flexibility in their career moves as existing non-compete clauses are no longer enforced. This change reduces potential legal hurdles for workers seeking new employment opportunities within the same industry.

The takeaway

Large investment firms are increasingly revisiting internal employment contracts to preempt broader regulatory debates about labor restrictions. Workers in private equity-backed companies should verify if their firm has adopted similar policies to enhance job mobility.