Agency's general counsel argues restrictions chill ‘concerted activities’
The general counsel for the National Labor Relations Board has targeted noncompete agreements with a recent memorandum concluding that provisions preventing employees from accepting certain types of jobs or operating certain types of businesses are typically unlawful because they chill rights to organize and bargain collectively.
General Counsel Jennifer A. Abruzzo issued Memorandum GC 23-08, “Non-Compete Agreements that Violate the National Labor Relations Act,” on May 30. The memo states Abruzzo’s position that noncompete agreements interfere with the rights of employees to engage in concerted activities for the purpose of collective bargaining under Section 7 of the National Labor Relations Act.
“It’s a bold move. It doesn’t have the force of law, but it certainly sends a signal.”
Section 7 protects employees’ “right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.” In turn, NLRA §8(a)(1) declares it an unfair labor practice for an employer “to interfere with, restrain, or coerce employees” in the exercise of the rights guaranteed under Section 7.
“Except in limited circumstances, I believe the proffer, maintenance, and enforcement of [noncompete] agreements violate Section 8(a)(1) of the...
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