News & Analysis as of

Non-Compete Agreements › Section 7

Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a... more +
Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -
Frantz Ward LLP

Acting NLRB General Counsel Rescinds Biden Board General Counsel Memoranda

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Although he was appointed Acting General Counsel (AGC) of the National Labor Relations Board (NLRB) less than two weeks ago, William B. Cowen has wasted no time in advancing the Trump administration’s pro-employer and...more

Payne & Fears

The NLRB Rescinds Certain General Counsel Memoranda

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On February 14, 2025, the Acting General Counsel of the National Labor Relations Board (NLRB) issued Memorandum GC 25-05, rescinding certain memoranda issued by the former General Counsel. Former General Counsel Jennifer A....more

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

NLRB Acting General Counsel Rescinds Non-compete Labor Policy

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In a significant development for employers that use restrictive covenant agreements, on February 14, 2025, National Labor Relations Board (NLRB) Acting General Counsel (GC) William B. Cowen rescinded prior NLRB GC memoranda,...more

FordHarrison

EntertainHR: NLRB Love Is Blind Complaint May Radically Alter Reality Television

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As reality television enthusiasts prepare for the Season 8 premiere of Netflix’s Love is Blind this Valentine’s Day, the show’s producers are navigating a recent National Labor Relations Board complaint that could lead to...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

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

Robinson & Cole LLP

Legal Update: General Counsel Memorandum Urges NLRB to Find Certain Non-Compete Agreements and Stay-or-Pay Provisions Unlawful

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On October 7, 2024, the National Labor Relations Board’s (Board) General Counsel, Jennifer Abruzzo, issued a memorandum urging the Board to find certain non-compete provisions unlawful and to remedy any related infringement...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”...

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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

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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

Cozen O'Connor

NLRB General Counsel Issues Memorandum Arguing Noncompetes are Illegal

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In May 2023, National Labor Relations Board’s General Counsel Jennifer Abruzzo issued Memorandum GC 23-08, taking the position that noncompete provisions violate the National Labor Relations Act (NLRA) except in limited...more

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

Vinson & Elkins LLP

Should I Stay or Should I Go? NLRB General Counsel Takes Aim at “Stay-or-Pay” Provisions

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In May 2023, Jennifer A. Abruzzo (the “General Counsel”), General Counsel for the National Labor Relations Board (“NLRB”), took the position that certain non-compete provisions violate the National Labor Relations Act...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

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

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

Fisher Phillips

Snapshot on the Staffing Industry: NLRB GC’s Crackdown On “Stay-or-Pay” Provisions and Non-Competes Demands Your Attention

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Welcome to this edition of the FP Snapshot on the Staffing Industry. In this edition, we will take a look at the NLRB General Counsel’s October 7 memorandum attacking “stay or pay” provisions and non-compete agreements and...more

Littler

NLRB General Counsel Explains What Remedies She Wants for Non-Competes She Considers Illegal and Promises Crack-Down on...

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On October 7, 2024, National Labor Relations Board General Counsel (GC) Jennifer Abruzzo issued GC Memorandum 25-01, consisting of two parts. First, the GC urges the NLRB to provide make-whole relief to employees if the Board...more

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

Beltway Buzz - October 2024 #2

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The Beltway Buzz is a weekly update summarizing labor and employment news from inside the Beltway and clarifying how what’s happening in Washington, D.C., could impact your business....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

Parker Poe Adams & Bernstein LLP

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

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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

Fisher Phillips

NLRB Counsel Cracks Down On “Stay-or-Pay” Provisions and Non-Competes: 7 Steps Employers Should Consider in Response

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The National Labor Relations Board’s chief lawyer just said that many “stay-or-pay” provisions – agreements where workers are asked to repay their employer if they separate from employment – violate federal law, and also...more

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

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