News & Analysis as of

Restrictive Covenants › Section 7 › Employees

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

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

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

Seyfarth Shaw LLP

NLRB’s Non-Compete Power Grab – Can Employers Avoid NLRB’s Oversight?

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An administrative law judge (“ALJ”) of the National Labor Relations Board (“NLRB”) in J.O. Mory, Inc. recently required an employer to rescind certain restrictive covenants in its employment agreements. The decision is yet...more

Jenner & Block

NLRB Settles Noncompete Regulatory Action

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In May 2023, the General Counsel of the National Labor Relations Board (“NLRB”) published a memorandum stating that an employer who requires a nonmanagerial/nonsupervisory employee to sign a noncompete agreement violates...more

Seyfarth Shaw LLP

Is the NLRB’s New Stance on Restrictive Covenants Mostly Bark With a Little Bite?

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The National Labor Relations Board (“NLRB”) sent shockwaves through the employment landscape when General Counsel Jennifer Abruzzo took the position that the “proffer, maintenance, and enforcement” of restrictive covenants...more

Littler

Recent NLRB Activity is a Mixed Bag for Employers’ Use of Restrictive Covenants

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Two recent developments involving the National Labor Relations Board’s scrutiny of restrictive covenant agreements, per its general counsel’s Memorandum 23-08, have provided a mix of good and bad news for employers. On one...more

Spilman Thomas & Battle, PLLC

Attacks on Non-Disclosure, Confidentiality, and Non-Compete Agreements in 2023

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On several fronts in 2023, we saw federal agencies and entities attacking the scope and enforceability of certain employment agreements, including non-disclosure, confidentiality, and non-compete agreements. Employers need to...more

Seyfarth Shaw LLP

We’ve Got a Test Case: The NLRB Files its First Complaint Challenging the Validity of Restrictive Covenants

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The National Labor Relations Board moved from theory to practice in this administration’s battle against restrictive covenants. Recently, the Regional Director of Region 9 of the National Labor Relations Board filed a...more

K&L Gates LLP

NLRB General Counsel Seeks to Outlaw Most Noncompetition Agreements

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Introduction - On 30 May 2023, the Office of the General Counsel (the General Counsel) of the National Labor Relations Board (the Board) issued a policy memo (30 May GC Memo) expressing its position that noncompetition...more

Bradley Arant Boult Cummings LLP

Noncompetes Back in the Crosshairs: NLRB Takes Its Shot at Noncompetition Agreements

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Can you still have noncompete agreements with your employees? There has been a lot of buzz about this issue, and this week the general counsel of the National Labor Relations Board joined the conversation with a memorandum,...more

Davis Wright Tremaine LLP

NLRB General Counsel Moves to Invalidate Noncompete Agreements

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On May 30, 2023, the General Counsel of the National Labor Relations Board, Jennifer Abruzzo, issued Memorandum GC 23-08, setting forth her view that noncompete provisions in employment contracts and severance agreements...more

ArentFox Schiff

NLRB General Counsel Asserts That Non-Competition Agreements For Non-Management and Non-Supervisory Employees Are Unlawful

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On May 30, 2023, Jennifer Abruzzo, General Counsel of the National Labor Relations Board (NLRB), published a controversial enforcement memorandum asserting that most post-employment non-competition agreements for...more

Littler

NLRB General Counsel Abruzzo Targets Employee Non-Competes under NLRA

Littler on

On May 30, 2023, General Counsel (GC) Jennifer A. Abruzzo released Memorandum 23-08, Non-Compete Agreements that Violate the National Labor Relations Act. In the memorandum, Abruzzo urges the National Labor Relations Board to...more

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