News & Analysis as of

Section 7 Employment Contract Non-Compete Agreements

WilmerHale

Texas Court Strikes Down FTC Noncompete Rule

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In an eagerly awaited decision, United States District Judge for the Northern District of Texas Ada Brown issued yesterday a nationwide injunction striking down the Federal Trade Commission’s Noncompete Clause Rule,...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

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

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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

Ogletree, Deakins, Nash, Smoak & Stewart,...

The Practical NLRB Advisor: Fall 2023

Ogletree Deakins’ Traditional Labor Relations Practice Group is pleased to announce the publication of the Fall 2023 issue of the Practical NLRB Advisor. In this issue of the Advisor, we cover three of those sharply divided...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

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

Tucker Arensberg, P.C.

Federal Government Continues Assault on Non-Compete Agreements

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Making sense of the NLRB’s effort to limit non-compete agreements. In late May, Jennifer Abruzzo, the General Counsel for the National Labor Relations Board (NLRB), issued Memorandum GC 23-08, in which she expressed her...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

Miles & Stockbridge P.C.

NLRB Targets Noncompete Agreements

In a continued effort to crack down on provisions in employment agreements, the National Labor Relations Board’s General Counsel (“GC”) announced that she will find most noncompete agreements between private sector employers...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

Gould + Ratner LLP

Non-Compete Agreements Come Under More Fire

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On May 30, 2023, National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued a memo advising NLRB regional directors that non-compete agreements generally infringe on employees’ rights under Section 7 of the...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

Smith Anderson

NLRB General Counsel Says Non-Competes Are Unlawful

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Under the Biden administration, administrative agencies have taken aggressive action attempting to banish non-competes and similar agreements from the workplace. On January 5, 2023, the Federal Trade Commission (“FTC”)...more

Tonkon Torp LLP

Noncompetes Under Fire from National Labor Relations Board

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On May 30, 2023, National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued a memorandum taking aim at noncompetition agreements. Already subject to various levels of scrutiny at the state-level, Abruzzo’s...more

Perkins Coie

NLRB General Counsel Opines Noncompete Agreements May Violate the National Labor Relations Act

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The National Labor Relations Board (NLRB or the Board) General Counsel Jennifer A. Abruzzo issued a memorandum on May 30, 2023, opining that noncompete agreements contained in employment agreements and severance agreements...more

Harris Beach PLLC

NLRB Guidance Declares Non-Competes Unlawful

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Non-compete agreements continue to face intense scrutiny from government authorities. On May 30, the General Counsel for the National Labor Relations Board (“NLRB” or “Board”) issued a guidance memorandum opining that...more

Kohrman Jackson & Krantz LLP

NLRB General Counsel Aims to End Non-Compete Agreements

On May 30, 2023, Jennifer Abruzzo, General Counsel for the National Labor Relations Board (NLRB), issued a memorandum to all regional offices stating that non-compete agreements in employment contracts and severance...more

Seyfarth Shaw LLP

Did the NLRB Preempt Non-Compete Litigation?

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Over last week, two seemingly unconnected events happened that impact restrictive covenant and labor law. First, the National Labor Relations Board’s General Counsel, Jennifer Abruzzo, issued a memorandum opining that certain...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

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