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Employer Liability Issues Restrictive Covenants The National Labor Relations Act

Maynard Nexsen

Acting NLRB General Counsel Rescinds Several GC Memos, including Guidance on Restrictive Covenants

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On February 14, 2025, newly appointed National Labor Relations Board Acting General Counsel William Cowen issued a General Counsel memorandum rescinding several memoranda issued by prior NLRB GC Jennifer Abruzzo. Among of...more

McGlinchey Stafford

NLRB General Counsel Already Instituting Changes

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The National Labor Relations Board (NLRB) can change subject to political whims – particularly since the President appoints the agency’s board members and the Office of the General Counsel. Interestingly, on January 25,...more

Keating Muething & Klekamp PLL

NLRB Acting General Counsel Rescinds Numerous Predecessor’s Memoranda

On February 14, 2025, National Labor Relations Board (NLRB) acting General Counsel William B. Cowen rescinded several memoranda issued by the former NLRB General Counsel Jennifer Abruzzo. The rescinded memoranda include, GC...more

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

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

Orrick, Herrington & Sutcliffe LLP

NLRB General Counsel Cracks Down on Stay or Pay Provisions and Calls for Make Whole Remedies

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

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

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”...

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

Maynard Nexsen on

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

Faegre Drinker Biddle & Reath LLP

NLRB General Counsel’s Memo Attacks Employee Repayment Agreements and Expands Remedies

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

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

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

Hinshaw & Culbertson - Employment Law...

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

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

Parker Poe Adams & Bernstein LLP

NLRB Memo Outlines Stricter Enforcement of Noncompetes and 'Stay-or-Pay' Provisions

The National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued a memorandum this week titled "Remedying the Harmful Effects of Non-Compete and 'Stay-or-Pay' Provisions that Violate the National Labor...more

Steptoe & Johnson PLLC

NLRB: Use of Non-Compete and "Stay-or-Pay" Clauses May Trigger Significant Monetary Consequences for Employers

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On October 7, National Labor Relations Board (NLRB) General Counsel Jennifer A. Abruzzo issued Memorandum GC 25-01, reinforcing and expanding previous positions on how certain restrictive covenants may violate the National...more

Kilpatrick

NLRB General Counsel Continues Targeting Non-Competes And Other Standard Employment Fare

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Since being confirmed by the Senate in July 2021, National Labor Relations Board (“NLRB” or “Board”) General Counsel Jennifer Abruzzo has issued 26 memoranda. Many of the GC Memos issued during GC Abruzzo’s tenure present...more

Epstein Becker & Green

NLRB Issues Complaint Alleging Business-to-Business No-Poaching Agreements Violate Employees’ Rights in Latest Attack on...

Epstein Becker & Green on

On September 12, 2024, the Regional Director of the National Labor Relations Board’s (“NLRB”) Region 22 in Newark, New Jersey, issued an unfair labor practice complaint against a New Jersey building services company, alleging...more

Epstein Becker & Green

NLRB Opens New Front in Campaign Against Contractual Restrictive Covenants, Now Targeting No-Poach Provisions in a Business’...

Epstein Becker & Green on

On September 12, 2024, the Regional Director of the National Labor Relations Board’s (“NLRB”) Region 22 in Newark, New Jersey, issued an unfair labor practice complaint against a New Jersey building services company, alleging...more

Fisher Phillips

Your Non-Compete and Trade Secrets To-Do List for August 2024

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Courts and lawmakers around the country are constantly refining the laws on non-competition, non-solicitation, and non-disclosure agreements, which means employers need to stay up to speed in order to prevent unfair...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

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

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