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Sunday, April 26, 2026

First, They Came For Non-Competes — Now, The Focus Is On Non ... - Mondaq News Alerts

In an upcoming article in the Nassau Lawyer, I will examine the FTC's proposed ruling as it pertains to essentially outlawing non-compete agreements nationwide. However, adding insult to injury, the NLRB issued a ruling on February 21, 2023 asserting that employees cannot waive their rights under Federal Labor Law to disparage former employers in exchange for severance payments, notwithstanding that the former employer paid the employee a severance payment and denied all liability associated with the allegations asserted by that employee.

The action by the NLRB, which affects all employers irrespective of whether they are unionized, is simply following a trend in various states that have established broad bans on the company's use of non-disclosure and non-disparagement provisions. For example, effective June 9, 2022, Washington state enacted the "Silent No More Act," banning NDAs related to all form of workplace discrimination as well as wage and hour violations and it prohibited agreements containing non-disclosure and non-disparagement provisions that restrict applicants, employees and independent contractors from openly discussing conduct or a legal settlement involving conduct of the applicant, employee or contractor who "reasonably believed" was subject to illegal discrimination, harassment, retaliation, wage and hour violations, sexual assault or conduct that is "against a clear mandate of public policy."

While that state's statute still would require employees to...



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