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Saturday, September 12, 2026

Confidentiality, Non-Solicitation, and Non-Competes: The NLRB ... - Dentons

As discussed in prior Iowa Employment Law Insights articles, the National Labor Relations Board (NLRB) in McLaren Macomb addressed issues of the rights of employees to organize under Section 7, limiting severance agreement terms relating to confidentiality and non-disparagement clauses as well as setting forth several other areas of concern.

Jennifer Abruzzo, general counsel for the NLRB, then subsequently issued a memorandum on March 22, 2023, expanding upon McLaren Macomb in relationship to these issues in severance agreements. That memo also references that the NLRB will be carefully reviewing noncompete clauses as they may also impact Section 7 rights.

On May 30, 2023, Ms. Abruzzo and the office of the NLRB general counsel, issued a new memorandum stating that non-compete agreements in most circumstances would be considered to “interfere with employees’ exercise of rights under Section 7 of the National Labor Relations Act...”

May 30 NLRB Memo

This most recent memorandum provides five statements as to how such agreements likely chill employees’ rights. The statements essentially say that a noncompete agreement would prevent an employee from seeking other local employment. Since employees would be prohibited from accepting employment from other local employers, it would be more difficult for employees to demand better working conditions and to engage in proactive work actions.

The memorandum indicates that noncompetition agreements may be acceptable if they are “...



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