- NLRB General Counsel Memorandum 25-01 urges the Board to seek “make whole” remedies for non-compete agreements that run afoul of the NLRA.
- The Memorandum also alleges certain “stay-or-pay” arrangements are unlawful unless narrowly tailored.
- Although this document describes how the NLRB general counsel wants to see the law develop, rather than how it has been interpreted to date, employers should expect her positions to receive careful consideration when they come before the NLRB.
On October 7, 2024, National Labor Relations Board General Counsel (GC) Jennifer Abruzzo issued GC Memorandum 25-01, consisting of two parts. First, the GC urges the NLRB to provide make-whole relief to employees if the Board finds that non-compete provisions violate the National Labor Relations Act (the “Act”). Doubling down on her prior commitment to challenge non-competes (as articulated in GC Memo 23-08), the recent memo clarifies what remedies the GC will seek when an employer imposes a non-compete on its employees. Second, the GC asserts that certain “stay-or-pay” arrangements infringe employees’ Section 7 rights in the same ways non-competes do and therefore violate the Act unless narrowly tailored.
GC Proposes New Remedies for Non-Competes
Notwithstanding the NLRB’s longstanding practice of ordering rescission of unlawful workplace rules or contract terms to remedy unfair labor practices, GC Abruzzo now claims make-whole relief is necessary to remedy illegal non-competes consistent...
Topline Alexander Smirnov, the former FBI informant who was accused earlier this year of making false statements about President Joe Biden and his son Hunter Biden, was indicted Tuesday on unrelate...