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Employment Agreement Archives - The National Law Forum https://nationallawforum.com/tag/employment-agreement/ Legal Updates. Legislative Analysis. Litigation News. Mon, 05 Jun 2023 16:24:42 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://i0.wp.com/nationallawforum.com/wp-content/uploads/2017/11/cropped-grey-temple-Converted.jpg?fit=32%2C32&ssl=1 Employment Agreement Archives - The National Law Forum https://nationallawforum.com/tag/employment-agreement/ 32 32 111745018 NLRB Issues Memo on Non-competes Violating NLRA https://nationallawforum.com/2023/06/05/nlrb-issues-memo-on-non-competes-violating-nlra/ Mon, 05 Jun 2023 16:30:28 +0000 https://nationallawforum.com/?p=25438 On May 30, 2023, Jennifer Abruzzo, the general counsel for the National Labor Relations Board (NLRB), issued a memorandum declaring that non-compete agreements for non-supervisory employees violates the National Labor Relations Act. The memo explains that having a non-compete chills employees’ Section 7 rights when it comes to demanding better wages. The ­theory goes that … Continue reading NLRB Issues Memo on Non-competes Violating NLRA

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]]> On May 30, 2023, Jennifer Abruzzo, the general counsel for the National Labor Relations Board (NLRB), issued a memorandum declaring that non-compete agreements for non-supervisory employees violates the National Labor Relations Act. The memo explains that having a non-compete chills employees’ Section 7 rights when it comes to demanding better wages. The ­theory goes that employees cannot threaten to resign for better conditions because they have nowhere to go. Non-compete agreements also prohibit employees from seeking better working conditions with competitors and/or soliciting coworkers to leave with them for a local competitor.

Experts have yet to weigh in, but ultimately this issue will be decided by the federal courts. As an employer, if you employ any non-supervisory employees that are subject to a non-compete agreement, an unfair labor practice charge could be filed, and it appears the NLRB would lean towards invalidating the agreement, though all evidence would have to be taken into consideration.

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