Tue Oct 08 22:04:30 UTC 2024: ## NLRB Signals Crackdown on Unlawful Non-Compete Clauses
**Washington D.C. -** The National Labor Relations Board (NLRB) is gearing up to crack down on employers who use unlawful non-compete provisions in employment contracts. NLRB General Counsel Jennifer Abruzzo issued a new memo outlining her stance on such agreements, signaling that the agency intends to take action against companies that enforce these restrictions.
The memo specifically targets non-compete agreements and so-called “stay-or-pay” provisions, which require employees to stay with a company or receive a severance payment. Abruzzo argues that these provisions can violate federal labor law by limiting employee mobility and bargaining power.
This action comes after a Texas federal judge blocked a Federal Trade Commission (FTC) rule aimed at banning nearly all non-compete agreements nationwide. While the memo does not change the board’s precedent, it clearly highlights the General Counsel’s agenda to aggressively pursue cases involving these types of provisions.
This move is expected to have a significant impact on businesses across the country. Employers may need to review and revise their employment contracts to ensure compliance with federal labor law, potentially leading to legal challenges and increased scrutiny from the NLRB.
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