KKR Eliminates Non-Competes for Workers Earning Under $100,000

Investment firm KKR has announced it will cease enforcing non-compete agreements for employees earning below $100,000 per year across its portfolio companies. The voluntary policy, effective immediately, nullifies existing agreements and prohibits new ones for this wage bracket.

The decision impacts an estimated 800,000 workers in hundreds of companies owned by KKR, extending beyond the firm's own approximately 5,000 employees. This move comes amidst growing criticism of non-compete clauses, which critics argue suppress wages and stifle competition.

Nationwide, approximately 30 million U.S. workers, or 18 percent of the workforce, are subject to non-compete agreements. While often associated with executive roles, these clauses have also been applied to lower-wage positions in various sectors, from fast food to pest control.

Pete Stavros, KKR's co-head of global private equity, stated the policy change was prompted by a realization that workers such as dog groomers in portfolio companies were subject to these restrictive agreements. He noted this practice was common among low and middle-income employees within KKR's holdings.