On February 14, 2025, NLRB Acting General Counsel William B. Cowan rescinded a number of active General Counsel Memoranda citing an increasing “backlog of cases [grown] to the point where it is no longer sustainable.” Among those rescinded were a pair of memos issued by recently ousted NLRB General Counsel Jennifer Abruzzo that declare non-compete agreements between employers and workers
Continue Reading Acting NLRB General Counsel Rescinds Biden-Era Policy Guidance on Non-Compete Agreements
An administrative law judge (“ALJ”) of the National Labor Relations Board (“NLRB”) in J.O. Mory, Inc. recently required an employer to rescind certain restrictive covenants in its employment agreements. The decision is yet another attack on non-competes in line with the NLRB General Counsel’s May 30, 2023 memo (“Abruzzo Memo”) (see our prior article here), and apparent coordination
Continue Reading NLRB’s Non-Compete Power Grab – Can Employers Avoid NLRB’s Oversight?
In the inaugural session of the 2024 Trade Secrets Webinar Series, our panelists meticulously examine pivotal legislation, landmark cases, and legal advancements spanning trade secrets and data theft, non-competes and restrictive covenants, and computer fraud on a national scale. Tailored specifically for general counsel, labor and employment counsel, IP counsel, and HR professionals, this webinar offers essential insights into trade
Continue Reading Webinar Recap! 2023 Trade Secrets & Non-Competes Year in Review
Tuesday, January 30, 2024
1:00 p.m. to 2:00 p.m. Eastern
12:00 p.m. to 1:00 p.m. Central
11:00 a.m. to 12:00 p.m. Mountain
10:00 a.m. to 11:00 a.m. Pacific
Join Seyfarth’s partners, Michael Wexler, Robert Milligan, and Kate Perrelli for an insightful analysis of the key legal developments in 2023. Gain valuable perspectives that will equip
Continue Reading Upcoming Webinar! 2023 Trade Secrets & Non-Competes Year in Review
The National Labor Relations Board moved from theory to practice in this administration’s battle against restrictive covenants. Recently, the Regional Director of Region 9 of the National Labor Relations Board filed a consolidated complaint alleging that certain restrictive covenants contained in offer letters and policies in an employee handbook violated the National Labor Relations Act. This complaint is a logical
Continue Reading We’ve Got a Test Case: The NLRB Files its First Complaint Challenging the Validity of Restrictive Covenants
Wednesday, July 19, 2023
3:00 p.m. to 4:00 p.m. Eastern
2:00 p.m. to 3:00 p.m. Central
1:00 p.m. to 2:00 p.m. Mountain
12:00 p.m. to 1:00 p.m. Pacific
Confidentiality obligations and restrictive covenants are crucial tools employed by organizations to protect sensitive information, trade secrets, and competitive advantages. However, recent state law and regulatory developments and NLRB decisions
Continue Reading Upcoming Webinar! NLRB and Restrictive Covenants: Trends in Employment Confidentiality
Over last week, two seemingly unconnected events happened that impact restrictive covenant and labor law. First, the National Labor Relations Board’s General Counsel, Jennifer Abruzzo, issued a memorandum opining that certain non-compete agreements may violate the National Labor Relation Act by suppressing workers’ ability to engage in protected concerted activity. Second, the Supreme Court issued the Glacier Northwest, Inc. v.
Continue Reading Did the NLRB Preempt Non-Compete Litigation?
The FTC is not alone in taking aim at non-competes. Yesterday, the NLRB’s General Counsel Jennifer Abruzzo issued a memo to all regional directors, officers-in-charge, and resident officers at the NLRB stating that non-competes in employment agreements and severance agreements violate the National Labor Relations Act except in rare circumstances. Specifically, Ms. Abruzzo claims that such covenants interfere with workers’
Continue Reading The NLRB Joins the Fray: Another Attack on Non-Competes
The Board sent shockwaves through employment law in its February 21, 2023, decision in McLaren Macomb, which held that simply offering a draft settlement agreement with broad confidentiality and non-disparagement provisions violated the National Labor Relations Act (“NLRA”). We previously blogged about the McLaren decision and encourage you to read that post for a summary of the decision.
McLaren left unanswered a host of critical questions and, in the month following the decision, employers have not received any further clarity from the Board regarding how this decision will play out in practice. But some clarity—welcome or unwelcome—is coming. At some point this week, General Counsel Jennifer Abruzzo plans to release a guidance memo that will elaborate on the Board’s position.Continue Reading NLRB to Release Memo Clarifying Impact of McLaren Macombs on Confidentiality and Non-Disparagement Restrictions
On February 21, 2023, the National Labor Relations Board (“NLRB” or “Board”) once again issued new precedent when holding that the mere proffer of a draft severance agreement containing broad confidentiality and non-disparagement provisions violated the National Labor Relations Act (“NLRA” or “Act”). The severance agreement provisions before the Board contained extremely broad restrictions and arose in the context of underlying unfair labor practices (“ULPs”) that included circumventing a certified bargaining representative. It remains to be seen, therefore, whether the Board will seek to invalidate more narrowly-tailored confidentiality and non-disparagement provisions.Continue Reading NLRB Targets Confidentiality and Non-Disparagement Provisions