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In case you missed it, the FTC announced on April 23, 2024 that there will be a ban on non-compete agreements. Although it doesn’t go into effect until 120 days after the FTC announcement, this is is major news not only for the supply chain and logistics industries, but for the US workforce. According to the FTC non-compete agreements affect 18% of US workers. That is 30 million people!

Non competes are more common in the logistics and supply chain industries than you would think. A business development executive may have a non-compete anywhere from six months to five years stopping them from working for a company who is selling similar products or services. Non competes are signed in order to prevent previous employees from revealing secrets or sensitive proprietary information about the operations or pricing.

By banning these agreements, this will lead to more business formations and create an additional 8,500 new businesses to the country. This decision was made to define innovation.

Current non competes will remain valid, however employers are not allowed to force new non competes with senior executives who make more than $151,164 annually and in policy making positions. NDA (non-disclosure agreements) are not changing. These allow companies to protect their proprietary information the FTC found that 95% of executives with noncompete also have an NDA in place.

The Everest Group will assist both the client and candidate through every step of the hiring process. One of the first questions we ask is if the candidate has a non compete in place with their current employer. It is part of our best practices approach to make these kinds of things clear to the client when presenting a candidate from day one of talking to a candidate. To learn more about our best practices approach please visit our services page where we share what is it like to work with our firm as a candidate and a client. Our firm has been one of the leading logistics executive search firms for over three decades. We are here to help you grow your business with top talent.

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