Jennifer Abruzzo, the General Counsel for the National Labor Relations Board has previously been vocal (including in prior guidance ) about her position that certain non-compete agreements may run afoul of the National Labor Relations Act. On October 7, 2024, GC Abruzzo issued Memorandum GC 25-01 reiterating her position and laying out the remedies she sees as appropriate when employers utilize such non-compete provisions. The GC also set forth her view on certain “stay-or-pay” provisions (e.g., educational repayment contracts, sign-on bonuses with repayment terms, etc.), which she largely believes infringe upon employees’ Section 7 rights to engage in protected concerted activity for their mutual aid or protection and violate the NLRA unless they are narrowly tailored.
Read MoreOn October 27, 2023, the National Labor Relations Board (“NLRB”) published a Final Rule (“New Rule”) concerning the joint-employer standard. The New Rule was delayed more than once due to legal challenges and on March 8, 2024, a federal court in Texas vacated the New Rule. On May 7, 2024, the NLRB filed an appeal to the Fifth Circuit seeking to reverse the Texas court’s decision. However, on July 19, 2024, the NLRB voluntarily dismissed this appeal.
Read MoreAs employers may recall, on October 27, 2023, the National Labor Relations Board (“NLRB” or “Board”) published the long-awaited Final Rule (“New Rule”) concerning the joint-employer standard. The New Rule was supposed to take effect on December 26, 2023, but it was delayed more than once due to legal challenges. Most recently, the New Rule’s effective date was delayed to March 11, 2024; however, on March 8, 2024, a federal court judge in Texas vacated the New Rule. This means that for now, employers must continue to follow the joint employer rule issued in 2020. As a reminder, under that rule, a joint-employer relationship exists where a company exercises substantial direct and immediate control over the essential terms and conditions of another company’s employees.
Read MoreAs employers may recall, on September 6, 2022, the National Labor Relations Board (“NLRB” or “Board”) released a Notice of Proposed Rulemaking concerning the joint-employer standard under the National Labor Relations Act (“NLRA”). On October 27, 2023, the NLRB published the long awaited Final Rule concerning the joint-employer standard, which will take effect on February 26, 2024.
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