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The National Labor Relations Act › Restrictive Covenants

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

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

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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

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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

Genova Burns LLC

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

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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

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”...

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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

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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...

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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

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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

Cozen O'Connor on

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

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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

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

Morgan, Brown & Joy, LLP

NLRB General Counsel Seeks Harsher Remedies for Unlawful Non-Compete and Stay-or-Pay Agreements in Latest Memorandum

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On October 7, 2024, National Labor Relations Board (“NLRB”) General Counsel Jennifer Abruzzo issued Memorandum GC 25-01 where she takes the position that most “stay-or-pay provisions” violate the National Labor Relations Act...more

Frantz Ward LLP

Unlawful “Stay-or-Pay” Provisions and Non-Competes – Whether the Employee Stays or Goes, the NLRB’s General Counsel Says It May Be...

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On Monday, October 7, 2024, the General Counsel of the National Labor Relations Board (NLRB) published Memorandum GC 25-01, continuing the NLRB’s years-long effort of targeting employment agreements viewed as restricting...more

Morgan Lewis

NLRB General Counsel Expands Crackdown on Non-Competes with New Focus on ‘Stay-or-Pay’ Agreements

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National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo released GC Memo 25-01 on October 7, 2024 further urging the Board to find non-compete agreements, particularly “stay-or-pay” practices, unlawful and...more

CDF Labor Law LLP

NLRB GC Memo Calls For Aggressive Retroactive Make-Whole Remedies Against Employers 

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Last year, National Labor Relations Board (“NLRB” or “Board”) General Counsel, Jennifer Abruzzo, issued GC Memorandum 23-08 opining that, with some exceptions, the maintenance and enforcement of non-compete agreements...more

Littler

NLRB General Counsel Explains What Remedies She Wants for Non-Competes She Considers Illegal and Promises Crack-Down on...

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On October 7, 2024, National Labor Relations Board General Counsel (GC) Jennifer Abruzzo issued GC Memorandum 25-01, consisting of two parts. First, the GC urges the NLRB to provide make-whole relief to employees if the Board...more

Baker Donelson

Should Employees Stay or Should They Go: The NLRB and FTC Crack Down on Restrictive Covenants

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Many employers were encouraged when a federal court in Texas last month blocked the enforcement of a Federal Trade Commission (FTC) prohibition against essentially all non-compete employment agreements in Ryan, LLC v. FTC....more

Hinshaw & Culbertson - Employment Law...

Impact for Employers: The NLRB General Counsel Doubles Down on Restrictive Covenants and Stay-or-Pay Provisions

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The General Counsel of the National Labor Relations Board ("NLRB") issued Memorandum GC 25-01 on October 7, 2024, which establishes her intent to "urge the Board not only to find certain non-compete provisions unlawful, but...more

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