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Section 7 Employment Contract Employer Liability Issues

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

Parker Poe Adams & Bernstein LLP

NLRB Continues Assault on Noncompete Agreements

As we have previously covered in EmployNews, in June 2023, the general counsel for the National Labor Relations Board (NLRB) released a memo arguing that most noncompete agreements violate Section 7 of the National Labor...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

Kilpatrick

A Comprehensive Update on Recent Federal and State Efforts to Limit the Use of Employee Non-Compete Agreements

Kilpatrick on

Federal and state efforts to limit or outright prohibit the use of employee non-compete agreements have gained considerable momentum in the past year. As Kilpatrick’s labor and employment team has written about previously,...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

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

Lathrop GPM

Piling On - NLRB General Counsel Joins the Crusade Against Noncompete Agreements

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In a memorandum released on May 30, 2023, the National Labor Relations Board (“NRLB”) General Counsel opined that noncompete agreements may violate the federal National Labor Relations Act (“NLRA”). In doing so, the General...more

DarrowEverett LLP

Q2 Employment Law Updates: Non-Competes, Religious Accommodation and More

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So far, 2023 has been a wild ride for employers, a theme that looks to be continuing into the third quarter of the year. While certain predictions we made during Q1 came true in Q2 (we are looking at you, NLRB), others such...more

Spilman Thomas & Battle, PLLC

NLRB General Counsel Versus Covenants Not to Compete: What This Latest Fight Means for Your Business

In recent years, non-compete agreements have been a subject of scrutiny in the United States, with concerns raised over their potential impact on employee mobility and labor market competitiveness. In 2021, President Joe...more

Spilman Thomas & Battle, PLLC

NLRB’s GC Piles on to Increase Regulatory Scrutiny of Non-Compete Agreements

As we have often discussed, the National Labor Relations Board under the Biden administration has prioritized expanding employees’ rights under Section 7 of the National Labor Relations Act (the “Act”). Most recently, in GC...more

Venable LLP

The NLRB Places Non-Compete Agreements in Its Crosshairs

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Certain states, most notably California, have long sought to restrict or outright ban employee non-competition covenants. The anti-compete crowd gained a strong supporter from the federal administrative state on May 30, 2023,...more

BakerHostetler

A New Front in the Noncompete Wars: NLRB’s General Counsel Claims Noncompete Agreements Violate the Labor Act

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The General Counsel of the National Labor Relations Board (NLRB or Board), Jennifer A. Abruzzo, recently issued a memorandum stating that “the proffer, maintenance, and enforcement” of noncompete provisions in employment...more

Benesch

NLRB’s General Counsel (Once Again) Limits Employment Agreements

Benesch on

In a recent memorandum to all Regional Directors, Officers-in-Charge, and Resident Officers, the National Labor Relations Board’s (“NLRB”) General Counsel, Jennifer Abruzzo, sets forth her view that the proffer, maintenance,...more

Davis Wright Tremaine LLP

NLRB General Counsel Moves to Invalidate Noncompete Agreements

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

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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

Mintz

Who (Actually) is the Boss (Take Two)? The NLRB Takes on Non-Competes

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A few months ago, we wrote about the NLRB General Counsel's opinion that some non-disparagement and confidentiality provisions in employment agreements potentially interfered with employees' NLRA Section 7 rights. That...more

Polsinelli

NLRB General Counsel Takes Aim at Non-Competition Agreements

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The General Counsel of the National Labor Relations Board (“NLRB”) set her sights on a new target with the latest memorandum: non-competition agreements. The memorandum, while not binding, lays out the General Counsel’s...more

White & Case LLP

NLRB Requires Changes to Employee Severance and Other Agreements

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Earlier this year, the National Labor Relations Board ("NLRB") issued its decision and order in McLaren Macomb, 372 NLRB No. 58 (February 21, 2023), holding that certain confidentiality and non-disparagement provisions...more

Nelson Mullins Riley & Scarborough LLP

NLRB General Counsel Issues Guidance on Severance Agreement Restrictions following McLaren Macomb

On March 22, 2023, NLRB General Counsel Jennifer Abruzzo issued Memorandum GC 23-05 (the “Memorandum”) offering guidance to Regional Directors for interpreting the National Labor Relations Board’s (the “NLRB” and the “Board”)...more

Wyrick Robbins Yates & Ponton LLP

NLRB Questions Confidentiality and Nondisparagement Provisions in Separation Agreements

Employers terminating employees frequently offer severance payments in exchange for the employees’ entry into a separation agreement.  Generally these separation agreements include a release of claims along with other...more

Dickinson Wright

NLRB’s Combination McLaren Decision and GC Memo KO’s Severance (and Other) Agreements

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In the McLaren Macomb opinion issued last month, 372 NLRB No. 58 (2023), the National Labor Relations Board (“NLRB”) landed a healthy punch chipping away at what had previously been considered standard severance provisions in...more

Manatt, Phelps & Phillips, LLP

NLRB: Confidentiality, Non-Disparagement Provisions Violate NLRA

Offering an employee a severance agreement that includes confidentiality and non-disparagement provisions runs afoul of Section 8(a)(1) of the National Labor Relations Act (NLRA), a divided National Labor Relations Bureau...more

FordHarrison

New NLRB Decision Prohibits Overly Broad Language In Non-Disparagement And Confidentiality Provisions In Severance Agreements

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Executive Summary: The National Labor Relations Board (the Board) recently overruled two prior Board decisions and held that overly broad language in non-disparagement and confidentiality clauses included in severance...more

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