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Non-Compete Agreements › Employer Liability Issues › NLRB General Counsel

Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a... more +
Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -
Maynard Nexsen

Acting NLRB General Counsel Rescinds Several GC Memos, including Guidance on Restrictive Covenants

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On February 14, 2025, newly appointed National Labor Relations Board Acting General Counsel William Cowen issued a General Counsel memorandum rescinding several memoranda issued by prior NLRB GC Jennifer Abruzzo. Among of...more

Keating Muething & Klekamp PLL

NLRB Acting General Counsel Rescinds Numerous Predecessor’s Memoranda

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On February 14, 2025, National Labor Relations Board (NLRB) acting General Counsel William B. Cowen rescinded several memoranda issued by the former NLRB General Counsel Jennifer Abruzzo. The rescinded memoranda include, GC...more

Miller Nash LLP

NLRB GC Memo Circles Back on Noncompetes and “Stay-or-Pay” Provisions in Employment Agreements

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On October 7, 2024, the National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued GC Memorandum 25-01: “Remedying the Harmful Effects of Non-Compete and “Stay-or-Pay” Provisions that Violate the National...more

Husch Blackwell LLP

Labor Law Insider - Non-Competes, Including “Pay-or-Stay” Provisions, Under Continued Assault

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Husch Blackwell partner Tyler Paetkau joins Labor Law Insider host Tom Godar to discuss the latest assault on non-compete agreements and their various iterations. While an August 2024 district court order enjoined the Federal...more

Fisher Phillips

October’s Spookiest Restrictive Covenant Developments: An Employer’s 5-Ingredient Witches’ Brew to Ward Off Harm

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“Magic words,” “TRAPs,” and the federal non-compete ban rising from the dead? October had several spooky developments in restrictive covenant law, but no need to be frightened! We’ve got you covered with updates, insights,...more

Orrick, Herrington & Sutcliffe LLP

NLRB General Counsel Cracks Down on Stay or Pay Provisions and Calls for Make Whole Remedies

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The National Labor Relations Board (NLRB) General Counsel is cracking down on stay-or-pay provisions. Here are takeaways for employers from an October 7 memo: As a reminder, the NLRA only applies to non-supervisory employees,...more

BakerHostetler

Adding Injury to Insult: The NLRB’S General Counsel Lays Out Expanded Remedies For Unlawful Noncompete and Stay-or-Pay Agreements

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We previously reported on a May 2023 memorandum issued by the general counsel of the National Labor Relations Board (NLRB or Board), Jennifer A. Abruzzo, stating her view that “the proffer, maintenance, and enforcement” of...more

Nutter McClennen & Fish LLP

NLRB General Counsel Says Noncompete and "Stay-or-Pay" Arrangements May Expose Employers to Damages

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On May 30, 2023, the National Labor Relations Board’s (NLRB) General Counsel (GC), Jennifer Abruzzo, issued a memorandum setting forth the GC’s position that the proffer, maintenance, or enforcement of noncompete agreements...more

Bradley Arant Boult Cummings LLP

Where Are We on Noncompetes? Update on the Federal Role

Bradley Arant Boult Cummings LLP on

We have news on two fronts: First, the FTC Rule - As related to the Federal Trade Commission’s nationwide ban on noncompete agreements, the FTC has appealed the federal court injunction in Texas to the federal Fifth...more

BCLP

NLRB General Counsel Targets Non-Competes and Stay-or-Pay Provisions

BCLP on

Last week, the National Labor Relations Board’s General Counsel Jennifer A. Abruzzo (the “GC”) announced her position that “stay-or-pay” provisions in employment agreements are unlawful under the National Labor Relations Act...more

Bond Schoeneck & King PLLC

NLRB General Counsel Continues Challenge to Non-Compete Agreements, Announces Position on Sign-On Bonuses and Other “Stay-or-Pay”...

Bond Schoeneck & King PLLC on

We previously reported that the National Labor Relations Board (NLRB or the Board) General Counsel Jennifer Abruzzo issued a memorandum in May 2023 advancing the position that non-compete agreements between employers and...more

Maynard Nexsen

NLRB’s General Counsel Urges Stricter Guidelines on Non-Competes and “Stay-or-Pay” Provisions

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On October 7, 2024, National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo released Memorandum GC 25-1 titled "Remedying the Harmful Effects of Non-Compete and 'Stay-or-Pay' Provisions that Violate the...more

Faegre Drinker Biddle & Reath LLP

NLRB General Counsel’s Memo Attacks Employee Repayment Agreements and Expands Remedies

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On October 7, 2024, National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued Memorandum GC 25-01 (Memo), setting forth aggressive new remedies for unlawful noncompete and “stay-or-pay” provisions as well...more

Morgan, Brown & Joy, LLP

NLRB General Counsel Seeks Harsher Remedies for Unlawful Non-Compete and Stay-or-Pay Agreements in Latest Memorandum

Morgan, Brown & Joy, LLP on

On October 7, 2024, National Labor Relations Board (“NLRB”) General Counsel Jennifer Abruzzo issued Memorandum GC 25-01 where she takes the position that most “stay-or-pay provisions” violate the National Labor Relations Act...more

Morgan Lewis

NLRB General Counsel Expands Crackdown on Non-Competes with New Focus on ‘Stay-or-Pay’ Agreements

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National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo released GC Memo 25-01 on October 7, 2024 further urging the Board to find non-compete agreements, particularly “stay-or-pay” practices, unlawful and...more

CDF Labor Law LLP

NLRB GC Memo Calls For Aggressive Retroactive Make-Whole Remedies Against Employers 

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Last year, National Labor Relations Board (“NLRB” or “Board”) General Counsel, Jennifer Abruzzo, issued GC Memorandum 23-08 opining that, with some exceptions, the maintenance and enforcement of non-compete agreements...more

Hinshaw & Culbertson - Employment Law...

Impact for Employers: The NLRB General Counsel Doubles Down on Restrictive Covenants and Stay-or-Pay Provisions

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The General Counsel of the National Labor Relations Board ("NLRB") issued Memorandum GC 25-01 on October 7, 2024, which establishes her intent to "urge the Board not only to find certain non-compete provisions unlawful, but...more

Brooks Pierce

NLRB General Counsel Doubles-Down on Non-Compete Agreement—and Takes Aim at “Stay-or-Pay” Provisions

Brooks Pierce on

On October 7, 2024, the General Counsel for the National Labor Relations Board (“NLRB”) issued a memorandum offering her perspective on damages employers may face when enforcing allegedly unlawful non-compete agreements, and...more

Parker Poe Adams & Bernstein LLP

NLRB Memo Outlines Stricter Enforcement of Noncompetes and 'Stay-or-Pay' Provisions

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The National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued a memorandum this week titled "Remedying the Harmful Effects of Non-Compete and 'Stay-or-Pay' Provisions that Violate the National Labor...more

Steptoe & Johnson PLLC

NLRB: Use of Non-Compete and "Stay-or-Pay" Clauses May Trigger Significant Monetary Consequences for Employers

Steptoe & Johnson PLLC on

On October 7, National Labor Relations Board (NLRB) General Counsel Jennifer A. Abruzzo issued Memorandum GC 25-01, reinforcing and expanding previous positions on how certain restrictive covenants may violate the National...more

Husch Blackwell LLP

Understanding the NLRB General Counsel’s Memo on “Stay-or-Pay” Provisions: What Employers Need to Do by December 6

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On October 7, 2024, the Office of the General Counsel issued a new memorandum, GC 25-01, expanding her prosecutorial agenda to remedy what she sees as the harmful effects of non-compete agreements and so-called “stay-or-pay”...more

Kilpatrick

NLRB General Counsel Continues Targeting Non-Competes And Other Standard Employment Fare

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Since being confirmed by the Senate in July 2021, National Labor Relations Board (“NLRB” or “Board”) General Counsel Jennifer Abruzzo has issued 26 memoranda. Many of the GC Memos issued during GC Abruzzo’s tenure present...more

Fisher Phillips

NLRB Counsel Cracks Down On “Stay-or-Pay” Provisions and Non-Competes: 7 Steps Employers Should Consider in Response

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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...more

Foster Swift Collins & Smith

[Webinar] 2024 Labor & Employment Law Virtual Update - September 18th, 8:30 am - 11:00 am ET

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It has been a particularly busy year on the labor and employment law front. To learn more about the major challenges employers face and developments your organization needs to address before year's end, we encourage you to...more

Jenner & Block

NLRB Settles Noncompete Regulatory Action

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In May 2023, the General Counsel of the National Labor Relations Board (“NLRB”) published a memorandum stating that an employer who requires a nonmanagerial/nonsupervisory employee to sign a noncompete agreement violates...more

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