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NLRB acting general counsel rescinds non-compete labor policy
In a significant development for employers that use restrictive covenant agreements, on February 14, 2025, National Labor Relations Board (NLRB) Acting General Counsel (GC) William B. Cowen rescinded prior NLRB GC memoranda, including two restrictive covenant-related memoranda authored by former general counsel, Jennifer Abruzzo.
In a significant development for employers that use restrictive covenant agreements, on February 14, 2025, National Labor Relations Board (NLRB) Acting General Counsel (GC) William B. Cowen rescinded prior NLRB GC memoranda, including two restrictive covenant-related memoranda authored by former general counsel, Jennifer Abruzzo. This action reverses the stance taken by former GC Jennifer Abruzzo, who argued that such agreements interfere with employees’ rights under Section 7 of the NLRA. Employers may now have more leeway to implement and enforce non-compete clauses without the same level of legal scrutiny or risk of being found in violation of non-supervisory/non-management employees’ rights under Section 7 of the NLRA.
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