While employers wait to see whether, and to what extent, the Federal Trade Commission enacts its proposed rule banning non-competes, the Office of the General Counsel for the National Labor Relations Board (the “NLRB”) has joined the fray, denouncing the legality of restrictive covenants. On May 30, 2023, Jennifer A. Abruzzo, General Counsel of the NLRB (the “General Counsel”), released a memorandum (GC 23-08) that concluded non-compete agreements can interfere with employees’ exercise of rights under Section 7 of the National Labor Relations Act (the “NLRA”), and, in such case, are unlawful.
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