In a recent memorandum, the National Labor Relations Board (NLRB) general counsel, Jennifer A. Abruzzo, addressed her concerns regarding noncompete agreements and their potential violation of employees’ rights under the National Labor Relations Act (act). Abruzzo asserts that, in most cases, the imposition, maintenance and enforcement of such agreements contradict Section 7 of the act, which safeguards employees’ rights to self-organization and collective bargaining.
In today’s business landscape, companies are increasingly turning to employment noncompete agreements to safeguard their assets and maintain a competitive edge. A noncompete agreement we are addressing here is a contractual provision commonly included in employment agreements. It is designed to restrict an employee’s ability to compete with his/her employer during or after the employment period. The purpose of a noncompete agreement is to protect the employer’s business interests, such as investments toward new employee training, trade secrets, confidential information, customer relationships, goodwill, or specialized knowledge, from being exploited by a departing employee oe an entity he may join.
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