National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued an important policy memorandum this week. In GC Memorandum 25-01, Abruzzo asserts that most “stay-or-pay” provisions, where workers agree to repay their employer for certain benefits if the employee prematurely leaves employment, should be found unlawful unless narrowly tailored. The memo also sets forth broad remedies GC Abruzzo intends to seek if such provisions are held unlawful. In addition, following up on her memo that most non-compete agreements are unlawful, GC Abruzzo laid out the remedies she will seek from the Board where it holds that an employer has unlawfully enforced or applied a non-compete agreement.
This special two-part blog will cover both subjects. In this edition, we will cover the remedies proposed by the GC for employees subject to non-compete provisions found unlawful by the Board. Next week, Part II of this blog will address stay-or-pay provisions, the GC’s legal position that such provisions are presumptively unlawful, and the remedies she will seek for employees subject to stay-or-pay provisions.Continue Reading NLRB GC to Seek Broad Remedies for Non-Compete and Stay-or-Pay Provisions – Part I