A few months ago the NRLB made some noise when it imposed restrictions on non-disparagement and confidentiality provisions in releases/settlement agreements. Now it’s back at it with non-competes following the footsteps of the FTC.
In her memo, General Counsel Jennifer Abruzzo asserted that non-compete agreements impact the ability of employees to exercise their right to quit or change jobs. Though not outright declaring all non-competes unenforceable, she advises limiting their use. So without a doubt the FTC has non-competes in its cross-hairs with the NRLB behind.
At this point we don’t have anything definitive from either agency. What we do have are a number of state legislatures limiting or outlawing non-competes. Yesterday the New York state senate passed non-compete legislation and it is likely to be signed by the governor. New York follows Minnesota and a number of states that enacted legislation in 2022.
Instead of worrying about what the FTC/NRLB may or may not do employers should be focused on changes impacting non-compete law in states where they employ workers. The good news for Texas employers is there are no changes to the Texas non-compete statute this session. We have other things to worry about.
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