The General Counsel of the National Labor Relations Board (Board), Jennifer Abruzzo, on May 30th issued a memorandum to the Board’s regional directors setting forth her view that non-compete clauses for employees protected by the National Labor Relations Act (NLRA) in employment contracts and severance agreements violate the NLRA except in limited circumstances. The statement opines that non-compete provisions dissuade employees from the exercise of certain rights when those provisions can be construed to limit access to other employment opportunities. This memo does not change current law, but it outlines a legal theory that the General Counsel’s office is likely to present to the five-member Board during adjudication of certain unfair labor practice cases in the future. LeadingAge is conducting analysis of the memorandum and will follow this development as it unfolds.
