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Saturday, May 2, 2026

Employees Have More Good News To Celebrate In The Rollback Of ... - Mondaq News Alerts

This has been a year of good news for employees when it comes to limiting or eliminating the professional and financial challenges that non-compete clauses can impose when considering a job change.

Earlier in the year, I wrote about an exciting development whereby the U.S. Federal Trade Commission proposed regulations that, if finalized and survive the predicted legal challenges, would ban nearly all non-competes across the country. On the heels of that, the U.S. National Labor Relations Board's General Counsel, Jennifer A. Abruzzo, signaled that she believed non-compete clauses may interfere with employees' rights under the federal National Labor Relations Act (NLRA), which I posted about here.

Just days ago, Ms. Abruzzo issued a legal memorandum following through on her prior indication that non-compete clauses would be on shaky legal ground. In her May 30, 2023 memo, Ms. Abruzzo opined that "[e]xcept in limited circumstances, I believe the proffer, maintenance, and enforcement of [non-compete] agreements violate Section 8(a)(1) of the [NLRA]." While the memo does not carry the force of law (i.e., it is not binding on a court), it is an important step forward in rolling back non-competition restrictions that impose unnecessary harm on many workers across the country. At the very least, it will inform how regional offices within the agency will handle complaints about non-competes, which may lead to a Board decision that does have more legal weight. It could also serve as...



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