NLRB Effort the Latest Attempt to Curtail Enforcement of Non-Compete Agreements

On May 30, 2023, National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued a memorandum asserting that the “proffer, maintenance, and enforcement” of most non-compete provisions in employment contracts violate the National Labor Relations Act (NLRA). This memorandum follows on the heels of other recent efforts to curtail non-compete provisions, including the Federal Trade Commission’s proposed rule that—if enacted and thereafter successful in promised court challenges—would retroactively ban nearly all such provisions in employment agreements; a bipartisan Senate bill that would ban most non-compete provisions going forward; and a slew of recent state legislation making non-compete provisions more difficult for employers to enforce.

Read the full Alert on the Duane Morris LLP website.

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