The National Labor Relations Board (NLRB or the Board) General Counsel Jennifer A. Abruzzo issued a memorandum on May 30, 2023, opining that noncompete agreements contained in employment agreements and severance agreements violate the National Labor Relations Act (NLRA) except in limited circumstances.
The General Counsel’s Rationale for Concluding Noncompetes Violate the NLRA
Section 7 of the NLRA protects employees’ rights to self-organization, collective bargaining, and other concerted activities. Section 8(a)(1) of the NLRA prohibits employers from interfering with, restraining, or coercing employees in the exercise of their Section 7 rights. According to the general counsel, except in limited circumstances, offering, maintaining, or enforcing a noncompete agreement violates Section 8(a)(1) of the NLRA by chilling employees in the exercise of Section 7 rights. This is because:
