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Do Freight Agent Programs Have Non-Competes?

Somerset Logistics

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July 20, 2026 4:24 am

Not every freight agent program uses non-competes. Here’s how to read the contract before your book of business depends on it.

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Do Freight Agent Programs Have Non-Competes

Some programs include non-competes in their contracts, and some don’t. There’s no industry standard for freight agent non-competes. The answer depends entirely on the brokerage you’re evaluating, and the only way to know is to read the agent agreement before you sign it.

That’s the short answer. The longer answer matters more, because “non-compete” gets used as a catch-all for several different contract terms. Each one affects your business in a very different way.

If you’re comparing freight agent programs, here’s how to tell those terms apart and what to look for before you commit your book of business to anyone.

Non-Compete, Non-Solicit, and Customer Ownership Are Three Different Things

Freight agents often use these terms interchangeably. Brokerages sometimes let them. However, each clause restricts something different, and the differences decide what happens if you ever leave.

A non-compete restricts where you can work. It typically says that after leaving the brokerage, you can’t work as a freight agent or broker. Sometimes that restriction applies anywhere, sometimes within a region, and sometimes for a set number of years. For an independent agent, a broad non-compete can mean walking away from your career, not just your brokerage.

A non-solicitation clause restricts who you can contact. It usually says you can’t pursue the brokerage’s customers, carriers, or employees for a period after leaving. A non-solicit doesn’t stop you from working in freight. It limits which relationships come with you.

A customer ownership policy decides whose accounts they are in the first place. This one isn’t about leaving at all. Instead, it defines whether the customers you land belong to you or to the brokerage while you’re still there. Day to day, it’s often the clause that matters most.

A program can have any combination of the three. Some have none. That’s why “do you have a non-compete?” is a good first question but a poor last one.

Related Reading: What Happens to Your Customers When You Leave a Freight Brokerage?

Why Some Brokerages Use Them

Brokerages that require freight agent non-competes usually describe them as protection – for their customer relationships, their training investment, or their market position.

There’s a version of that argument that’s reasonable. A brokerage that invests heavily in an agent’s development wants some assurance the relationship isn’t a stepping stone.

But experienced agents tend to see it differently. You built your customer relationships through years of service. A contract that could separate you from your own book, or from the industry itself, shifts risk heavily onto you.

It’s also worth noticing what a non-compete signals. Programs confident in their support, pay, and partnership don’t usually need a contract clause to enforce loyalty. In other words, retention by restriction and retention by relationship are two different business models.

What the Law Says About Freight Agent Non-Competes

The legal landscape shifted several times in the last two years, so it’s worth stating plainly where things stand.

In 2024, the Federal Trade Commission finalized a rule that would have banned most non-competes nationwide, including for independent contractors, which is how most freight agents operate. A federal court set the rule aside before it ever took effect, and the FTC later removed it from the books entirely. As of 2026, there is no federal ban on non-competes.

That means state law governs enforceability, and states vary widely. A few states void most non-competes outright. Others enforce them with limits on duration, geography, or income level. Some states also treat independent contractors differently than employees.

Courts generally treat non-solicitation clauses as a separate category. As a result, non-solicits are enforceable in more places than non-competes, though state rules vary there too.

Two practical points follow from all of this. First, a clause in your contract may or may not be enforceable where you live. You shouldn’t have to litigate to find out. Second, none of this is legal advice. If a contract contains language you don’t fully understand, have an attorney in your state review it before you sign.

What to Check Before You Sign an Agent Agreement

When you’re evaluating a program, look for clear answers to these questions in the contract itself, not in the recruiting conversation:

  • Is there a non-compete? If so, what activity does it restrict, over what geography, and for how long?
  • Is there a non-solicitation clause? Which relationships does it cover – customers, carriers, or both – and for how long after you leave?
  • Who owns the customer relationships you bring and the ones you land? Is that ownership written down, or implied?
  • What happens to commissions on freight that ships after your departure?
  • Can accounts be reassigned to other agents while you’re still there, and under what conditions?

If a recruiter’s verbal answer and the written contract don’t match, the contract wins. Ask for the discrepancy to be fixed in writing, or treat it as your answer.

Related Reading: How to Compare Freight Agent Programs Before Moving Your Book

How Somerset Approaches It

At Somerset Logistics, our agent agreements don’t include non-competes. They do include a non-solicitation provision, and since this article is about reading contracts closely, we’ll tell you exactly what it covers. If an agent leaves, we don’t back-solicit their customers. Your book of business is yours – you built those relationships, you own them, and they leave with you.

We’ve spent more than 26 years working with independent freight agents, and our view is simple. A partnership should be something you choose to continue, not something a contract forces you to. We’d rather earn another year of the relationship than restrict your next one.

Reading the Contract Is the Real Answer

So, do freight agent programs have non-competes? Some do. Some rely on non-solicits instead. Some use neither and compete on the strength of the partnership.

The programs worth considering will hand you the agreement early and answer contract questions directly. They’ll also put customer ownership in writing. If a brokerage hesitates on any of those, that hesitation is information.

Freight agent non-competes are only one line in a much bigger evaluation. If you’re comparing programs right now, our Freight Agent Resource Hub includes tools for weighing brokerages side by side. You can also reach out for a confidential conversation about what you’re looking for in your next brokerage partner.

Key Takeaways

  • There’s no industry standard: some freight agent programs require non-competes and others don’t, so the agent agreement itself is the only reliable answer.
  • Non-competes restrict where you can work, non-solicits restrict who you can contact, and customer ownership policies decide whose accounts they are – agents should evaluate all three.
  • There is currently no federal ban on non-competes; enforceability depends on state law, which varies widely.
  • Verbal recruiting promises don’t override written contract terms, get discrepancies corrected in writing.
  • A program confident in its support and pay generally doesn’t need contract restrictions to retain agents.

Frequently Asked Questions About Freight Agent Program Non-Competes

Do all freight agent programs require non-competes?

No. Some brokerages include non-compete agreements in their agent contracts, while others use non-solicitation clauses instead, and some use neither. There is no industry-wide standard, so the only dependable answer comes from reading the specific agent agreement before signing it.

What’s the difference between a non-compete and a non-solicit for freight agents?

A non-compete restricts your ability to work in the freight industry after leaving a brokerage, sometimes within a region or for a set period. A non-solicitation clause is narrower: it restricts you from pursuing the brokerage’s customers, carriers, or employees after you leave, but doesn’t prevent you from continuing to work as a freight agent.

Are freight agent non-competes enforceable?

It depends on state law. There is no federal ban on non-competes, and states range from voiding most non-competes entirely to enforcing them with limits on duration, geography, or compensation. Some states also treat independent contractors differently than employees. An attorney familiar with your state can tell you how a specific clause would likely hold up.

Did the FTC ban non-competes?

The FTC finalized a rule in 2024 that would have banned most non-competes nationwide, including for independent contractors. A federal court set the rule aside before it took effect, and it was later formally removed from federal regulations. As of 2026, no federal non-compete ban is in effect, and state law governs enforceability.

What happens to my book of business if my contract has a non-compete?

That depends on how the clause is written. A broad non-compete could prevent you from servicing your own customers at a new brokerage for its duration, while a non-solicit might allow you to keep working in freight but not with those specific accounts. This is why reviewing restrictive language before signing, ideally with an attorney, matters more than any recruiting conversation.

Does Somerset Logistics require non-competes?

No. Somerset’s agent agreements do not include non-competes. They include a non-solicitation provision addressing back-solicitation when an agent departs, an agent’s customers are not back-solicited, because Somerset’s position for more than 26 years has been that agents own the customer relationships they build, and those relationships leave with the agent.

Many experienced freight agents reading this blog are evaluating their current brokerage environment.

FOR FREIGHT AGENTS CONSIDERING A NEW BROKERAGE

If you're asking questions like:

  • Is my brokerage financially stable?
  • Am I competing wtih too many other agents?
  • Do I truly own my customer relationships?

It may be worth exploring the somerset difference

How to Choose the Best Freight agent program

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