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Restrictive Covenants Section 7

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

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

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

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

Woods Rogers

Do Non-Compete Agreements Violate the NLRA?

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On May 30, 2023, National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued a memorandum stating her position that non-compete agreements violate the National Labor Relations Act (NLRA) and encouraging the...more

Bradley Arant Boult Cummings LLP

Noncompetes Are in the NLRB’s Crosshairs – Can Trade Secret Protections Save Them?

Can you still have noncompete agreements with your employees? What if you explicitly state that the agreement protects trade secrets or other proprietary information? There has been a lot of buzz about this issue, and...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

Smith Gambrell Russell

NLRB General Counsel Declares Most Non-Compete Provisions Illegal Under the NLRA

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On May 30, 2023, 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 concluding that most...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

Cozen O'Connor

Non-Competes: The NLRB Has Entered The Chat

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On May 30, 2023, National Labor Relations Board (NLRB or the Board) General Counsel Jennifer Abruzzo issued Memorandum GC 23-08 (the Memo), titled "Non-Compete Agreements that Violate the National Labor Relations Act." In the...more

Amundsen Davis LLC

NLRB’s General Counsel Issues Controversial Memo Criticizing Non-Competes

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Following on the proposed rule of the FTC on non-competes, another federal threat to non-competes has emerged, this time from the National Labor Relations Board (NLRB)....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

Ruder Ware

Spring Brings Showers, Flowers, and Breaking Non-compete News!

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Last week, the National Labor Relations Board (NLRB)’s General Counsel publicly announced her position that most non-compete agreements violate the National Labor Relations Act (NLRA) by chilling employees’ ability to...more

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