In January 2023, the Biden administration, through the FTC, proposed a nationwide ban on non-compete agreements for workers and independent contractors, arguing they stifle worker mobility, suppress wages, and limit competition.
This would prohibit employers from imposing or maintaining non-competes and require them to rescind existing agreements. The FTC says this affects 30 million Americans, many of whom are in our space.
While most of you were prepping for 2024 and reading our columns about Supply Path Optimization, the FTC was deciding how to upend an effective yet despised tool to keep top talent locked down.
The final ruling, expected in April, hinges on public comments and navigating inevitable legal challenges. The Chamber of Commerce has already said it will fight this, and the Supreme Court has reversed other agency rules without congressional support. But this is now law in California and a number of additional state legislatures are pushing back on non-competes.
Assuming this eventually survives court challenges, the bans continue at the state level, or this picks up congressional support, this will affect tech organizations and vendors in our space sooner or later. I believe the key to surviving this lies in adapting to inevitable future changes in non-competes, and that means reevaluating how we attract and retain talent today.
Increased worker mobility, envisioned by the FTC’s proposed ban, empowers individuals to seek better opportunities. There are a lot of players in our vertical marooned at companies they desperately want to leave.
Covid changed the workplace. Maybe we don’t need to be in an office. Maybe we don’t need to wear pants. Maybe that social contract between employee and employer needs another look. And maybe the obvious next step is the FTC liberating workers from unfair contracts the same way the pandemic liberated workers from sitting in rush hour traffic.
If you’re currently under a non-compete, liberation may not be far off. The difference is that instead of relying on restrictive contracts, some businesses in our vertical can actually focus on creating a workplace that fosters genuine loyalty. I’m not talking about gimmicky “Fridays off” promises where clients get short-changed and good people find themselves “not working” on their cell phones at a baseball game. But rather a culture that values work-life balance, promotes professional development, and fosters a sense of belonging.
If you’re currently basing your business strategy on non-competes, my advice is to build a reputation for being a great place to work. Be like a country that people sneak into, not out of. Agreements built on non-compete clauses will need a creative redo. Actively embrace the shift from restricting talent to attracting it. This starts with honest reflection as a manager. Are you creating a workplace where people will stay, even if they can leave?
Looking around at my exceptionally talented team at our recent offsite, it was clear that the two decades of research from Harvard Business School and Google is right on this topic: the most important factor in a team’s success is “psychological safety,” where teammates feel free to throw out crazy ideas without fear of embarrassment. Aside from that, noncompetes can be replaced with meaningful mentorship programs, career development opportunities, and genuinely giving a shit about your colleagues. These investments create value beyond money, fostering community and growth that keeps talent engaged.
By focusing on culture, investment in people, and psychological safety, good companies in our space will win faster. The future of staffing political and public affairs companies isn’t just about dodging a non-compete ban, it’s about creating a people-centric industry that does attract and retain the best minds. It’s about building a future where talent chooses us, not because they have to according to legal constraints, but because they truly want to.
Culture eats strategy for breakfast. It laughs at your soon to be extinct non-competes. The end result will be that great places to work thrive and bad companies will fall harder and faster.
Jordan Lieberman is the CEO of Powers Interactive, a programmatic media company.
