In a not-so surprising move, the National Labor Relations Board’s General Counsel Jennifer Abruzzo issued a memo indicating she believes most non-competes violate the National Labor Relations Act and, in particular, Section 7 rights of employees.
Articles Discussing Restrictive Covenants In The Workplace And Other Topics Relating To Unfair Competition.
Employers following the Federal Trade Commission’s (“FTC”) rulemaking process that will restrict non-compete agreements in many employment relationships may be relieved to learn that the FTC is not expected to vote on its proposed rule to ban such agreements until April 2024, according to Bloomberg Law, following receipt of over 27,000 comments from the public.
However, employers should consider taking immediate action to reexamine their use of any non-compete agreements with employees and former employees following the May 30, 2023, National Labor Relations Board (NLRB) announcement that non-compete agreements violate the National Labor Relations Act (NLRA).
For more than a year, the Federal Trade Commission has been mulling on whether the federal government should regulate employee non-compete agreements. Traditionally, those agreements limit where and for whom an employee may work after leaving their job. The General […]
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.
On May 30, 2023, General Counsel (GC) Jennifer A. Abruzzo released Memorandum 23-08, Non-Compete Agreements that Violate the National Labor Relations Act. In the memorandum, Abruzzo urges the National Labor Relations Board to make new law declaring the proffer, maintenance, and enforcement of employee non-compete agreements by employers unlawful
The National Labor Relations Board General Counsel (GC) issued a memorandum on May 30, 2023, declaring her opinion that the “proffer, maintenance, and enforcement’ of noncompete agreements in employment contracts and severance agreements violate the National Labor Relations Act (NLRA) “except in limited circumstances.”
National Labor Relations Board (NLRB) General Counsel (GC) Jennifer Abruzzo’s efforts to alter the labor and employment landscape continue. The GC’s latest controversial enforcement memorandum (GC Memo 23-08) asserts that certain non-compete provisions in employment contracts and severance agreements violate the National Labor Relations Act.
Violating the Sherman Antitrust Act can result in criminal charges, not just civil liability. A criminal prosecution brought by the U.S. Department of Justice last fall is illustrative. The case also reflects a renewed, bipartisan effort at the federal level to crack down on non-compete agreements.
The Federal Trade Commission (FTC) proposed new Federal regulations to ban non-compete clauses from employment agreements nationwide. The ban will include non-solicitation and other restrictions that are currently designed to deter employees from competing with an employer after the employment relationship concludes.
On February 16, the Federal Trade Commission (FTC) hosted a public forum to examine its proposed rule to ban non-compete agreements.
On January 5, 2023, the Federal Trade Commission proposed a new rule with the goal of implementing a nationwide ban on the use of non-compete clauses in employment contracts.
Connecticut, Indiana, New York, Rhode Island, and Utah are among the latest states to propose further limitations on the use of post-employment restrictive covenants. Connecticut’s House Bill (HB) 6594 and New York’s Senate Bill (S) 3100 would prohibit the use of noncompetes with a wide swath of employees and independent
The U.S. Congress has joined a growing number of state legislatures and the Federal Trade Commission in seeking to curtail—or altogether end—the use of noncompetition agreements in the employment context. The newly introduced Workforce Mobility Act of 2023 would, for the most part, ban employers’ use of noncompete agreements.
On January 5, 2023, the Federal Trade Commission (FTC) issued a Notice of Proposed Rulemaking essentially banning non-compete clauses and categorizing them as unfair methods of competition.