News & Analysis as of

The National Labor Relations Act Non-Compete Agreements

The National Labor Relations Act is a United States federal statute enacted in 1935 to prevent labor strife by encouraging collective bargaining, protecting concerted activity and curtailing certain unfair labor... more +
The National Labor Relations Act is a United States federal statute enacted in 1935 to prevent labor strife by encouraging collective bargaining, protecting concerted activity and curtailing certain unfair labor practices by private sector managament and labor.  less -
Miller Nash LLP

NLRB GC Memo Circles Back on Noncompetes and “Stay-or-Pay” Provisions in Employment Agreements

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On October 7, 2024, the National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued GC Memorandum 25-01: “Remedying the Harmful Effects of Non-Compete and “Stay-or-Pay” Provisions that Violate the National...more

DLA Piper

Federal Crackdown on Worker Mobility Restrictions Continues Despite Early Setbacks

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Throughout the Biden Administration, worker mobility has been a touchstone of federal antitrust enforcement priorities. Despite several previous and well-publicized setbacks, federal agencies continue to pursue enforcement...more

Cozen O'Connor

Employment Law Now VIII-153 - NLRB General Counsel on Illegal "Stay or Pay" Employee Agreements

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NLRB General Counsel Jennifer Abruzzo joins Michael Schmidt today to discuss her latest memorandum finding that "stay or pay" provisions in employee agreements constitute illegal noncompetes under the National Labor Relations...more

Dechert LLP

2024 Election - Implications on Technology - Update

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Under the Trump administration, the real estate sector will likely face new circumstances defined by deregulation, leadership changes and tax reforms. While reduced compliance costs and regulatory burdens might pose...more

Dechert LLP

2024 Election - Implications on Life Sciences - Update

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With President-elect Trump announced as the winner of the 2024 election, the landscape of U.S. policy is poised for potential shifts that could significantly impact the life sciences sector. To a large degree, the extent to...more

Dechert LLP

2024 Election - Implications on Private Equity & Private Credit - Update

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With President-elect Trump announced as the winner of the 2024 election, the private equity and private credit sectors are poised for significant developments. Positive economic trends, such as waning inflation, anticipated...more

Husch Blackwell LLP

Labor Law Insider - Non-Competes, Including “Pay-or-Stay” Provisions, Under Continued Assault

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Husch Blackwell partner Tyler Paetkau joins Labor Law Insider host Tom Godar to discuss the latest assault on non-compete agreements and their various iterations. While an August 2024 district court order enjoined the Federal...more

Paul Hastings LLP

Recent Developments Affecting Non-Competes and Employee Mobility

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Employers take note: a series of recent developments could impact the way that companies across the country handle non-competition restrictions and retention rules. First, recent developments in the legal challenges to the...more

Robinson & Cole LLP

Legal Update: General Counsel Memorandum Urges NLRB to Find Certain Non-Compete Agreements and Stay-or-Pay Provisions Unlawful

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On October 7, 2024, the National Labor Relations Board’s (Board) General Counsel, Jennifer Abruzzo, issued a memorandum urging the Board to find certain non-compete provisions unlawful and to remedy any related infringement...more

Orrick, Herrington & Sutcliffe LLP

NLRB General Counsel Cracks Down on Stay or Pay Provisions and Calls for Make Whole Remedies

The National Labor Relations Board (NLRB) General Counsel is cracking down on stay-or-pay provisions. Here are takeaways for employers from an October 7 memo: As a reminder, the NLRA only applies to non-supervisory employees,...more

BakerHostetler

Adding Injury to Insult: The NLRB’S General Counsel Lays Out Expanded Remedies For Unlawful Noncompete and Stay-or-Pay Agreements

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We previously reported on a May 2023 memorandum issued by the general counsel of the National Labor Relations Board (NLRB or Board), Jennifer A. Abruzzo, stating her view that “the proffer, maintenance, and enforcement” of...more

Nutter McClennen & Fish LLP

NLRB General Counsel Says Noncompete and "Stay-or-Pay" Arrangements May Expose Employers to Damages

On May 30, 2023, the National Labor Relations Board’s (NLRB) General Counsel (GC), Jennifer Abruzzo, issued a memorandum setting forth the GC’s position that the proffer, maintenance, or enforcement of noncompete agreements...more

Kohrman Jackson & Krantz LLP

New NLRB Memo Targets Non-Compete & Stay-or-Pay Policies: Key Updates for Employers

NLRB General Counsel Jennifer Abruzzo issued Memorandum GC 25-01 on October 7, 2024, announcing her goal to remedy the alleged harmful effects she views inherent to overly broad non-compete and stay-or-pay provisions by...more

Genova Burns LLC

FTC Rule On Non-Competes Is Bruised But Not Yet Beaten As FTC Appeals, While NLRB Continues To Challenge Non-Competes

Genova Burns LLC on

In April 2024, the FTC issued a Rule declaring invalid most existing non-compete agreements and prohibiting most employers from entering into new non-compete agreements after September 3, 2024, with few exceptions. Three...more

Lasher Holzapfel Sperry & Ebberson PLLC

2025 Washington Employment Law Update – Minimum Wage, Exempt Employees, and Noncompete Updates

Beginning on January 1, 2025, the minimum wage in Washington will go up to $16.66 per hour, up 2.35% from 2024. In addition to the statewide minimum, various cities and counties have a dizzying array of higher minimum wages...more

BCLP

NLRB General Counsel Targets Non-Competes and Stay-or-Pay Provisions

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Last week, the National Labor Relations Board’s General Counsel Jennifer A. Abruzzo (the “GC”) announced her position that “stay-or-pay” provisions in employment agreements are unlawful under the National Labor Relations Act...more

Bond Schoeneck & King PLLC

NLRB General Counsel Continues Challenge to Non-Compete Agreements, Announces Position on Sign-On Bonuses and Other “Stay-or-Pay”...

We previously reported that the National Labor Relations Board (NLRB or the Board) General Counsel Jennifer Abruzzo issued a memorandum in May 2023 advancing the position that non-compete agreements between employers and...more

Maynard Nexsen

NLRB’s General Counsel Urges Stricter Guidelines on Non-Competes and “Stay-or-Pay” Provisions

Maynard Nexsen on

On October 7, 2024, National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo released Memorandum GC 25-1 titled "Remedying the Harmful Effects of Non-Compete and 'Stay-or-Pay' Provisions that Violate the...more

Smith Gambrell Russell

NLRB General Counsel Expounds on the Illegality of Most Non-Compete Provisions and Declares Many “Stay-or-Pay” Provisions Illegal...

Smith Gambrell Russell on

On October 7, 2024, the General Counsel of the National Labor Relations Board (“NLRB”) issued a memorandum (the “Memorandum”) to all NLRB Regional Directors, Officers-in-Charge, and Resident Officers (i) expanding upon the...more

Faegre Drinker Biddle & Reath LLP

NLRB General Counsel’s Memo Attacks Employee Repayment Agreements and Expands Remedies

On October 7, 2024, National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued Memorandum GC 25-01 (Memo), setting forth aggressive new remedies for unlawful noncompete and “stay-or-pay” provisions as well...more

Cozen O'Connor

NLRB General Counsel Issues Memorandum Arguing Noncompetes are Illegal

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In May 2023, National Labor Relations Board’s General Counsel Jennifer Abruzzo issued Memorandum GC 23-08, taking the position that noncompete provisions violate the National Labor Relations Act (NLRA) except in limited...more

Jackson Lewis P.C.

NLRB General Counsel Declares ‘Stay-Or-Pay’ Provisions Unlawful: What Employers Need to Know

Jackson Lewis P.C. on

Takeaways: •The General Counsel expanded her theory that certain restrictive covenants are unlawful by also including “stay-or-pay” provisions - •Employers could soon face expanded remedies for proffering, maintaining, -or...more

King & Spalding

NLRB General Counsel Announces Intention to Pursue Expansive Remedies for Non-Compete Agreements and to Target So-Called “Stay or...

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On October 7, 2024, National Labor Relations Board (“NLRB”) General Counsel Jennifer A. Abruzzo issued Memorandum GC 25-01, where she argues for expansive remedies for employers who violate the National Labor Relations Act...more

Epstein Becker & Green

NLRB General Counsel Calls for Crack Down and Harsh Remedies for Non-Competes and “Stay or Pay” Provisions

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National Labor Relations Board (“Board”) General Counsel Jennifer Abruzzo (“Abruzzo”) issued a General Counsel Memo (Memo GC 25-01) last week signaling that employers could face civil prosecution and significant monetary...more

Vinson & Elkins LLP

Should I Stay or Should I Go? NLRB General Counsel Takes Aim at “Stay-or-Pay” Provisions

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In May 2023, Jennifer A. Abruzzo (the “General Counsel”), General Counsel for the National Labor Relations Board (“NLRB”), took the position that certain non-compete provisions violate the National Labor Relations Act...more

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