The National Labor Relations Board’s chief lawyer just said that many “stay-or-pay” provisions – agreements where workers are asked to repay their employer if they separate from employment – violate federal law, and also reminded employers that she believes many non-compete agreements also run afoul of existing law. If that wasn’t enough, NLRB General Counsel Jennifer Abruzzo’s October 7 memorandum also said that employers have just 60 days to cure such unlawful agreements and could face potentially drastic monetary remedies if they don’t. We’ll answer the key questions you have about GC Memorandum 25-01 – including the legal authority it carries – and provide you with seven steps you should consider given this new attack on common workplace practices.
Why Did the NLRB’s Counsel Issue This Memo?
GC Memorandum 25-01 takes aim not only at “stay-or-pay” provisions but also expands on the GC’s prior attack on non-compete agreements. It’s another broadside against employers, urging NLRB regional directors to find these agreements infringe on employees’ rights under Section 7 of the National Labor Relations Act (NLRA). Two key events precipitated yesterday’s Memo:
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