Impact for Employers: The NLRB General Counsel Doubles Down on Restrictive Covenants and Stay-or-Pay Provisions

The General Counsel of the National Labor Relations Board ("NLRB") issued Memorandum GC 25-01 on October 7, 2024, which establishes her intent to "urge the Board not only to find certain non-compete provisions unlawful, but also, as fully as possible to remedy the harmful effects on employees when employers use and apply them."

The General Counsel has proposed a 60-day period, starting from the issuance of the October 7 Memorandum, for employers to address and rectify any existing "stay-or-pay" provisions that may not align with legitimate business interests. This directive necessitates that employers quickly evaluate their current provisions in light of the new guidelines, as many restrictive covenants and "stay-or-pay" clauses are likely to violate Section 7, according to the General Counsel's criteria. More ›

Texas Federal Judge Strikes Down FTC’s Noncompete Ban

On August 20, 2024, Judge Ada Brown of the United States District Court for the Northern District of Texas set aside and barred the nationwide implementation and enforcement of the FTC’s Final Noncompete Rule. More ›

FTC Faces Setback in U.S. District Court Over Noncompete Rule

On July 3, 2024, Judge Ada Brown of the United States District Court for the Northern District of Texas preliminarily enjoined the Federal Trade Commission ("FTC") from enforcing the Final Noncompete Rule ("Rule") against the parties to the pending lawsuit.

At this time, the prohibition on enforcement of the Rule is limited to the parties to the lawsuit. After additional briefing, the court deferred broader relief to later proceedings and intends to rule on the merits of the claim for injunctive relief on or before August 30, 2024. More ›

U.S. Supreme Court Rejects Relaxed Standard for Injunctive Relief Under Section 10(j) of the National Labor Relations Act

On June 13, 2024, the U.S. Supreme Court, in Starbucks Corp. v. McKinney (National Labor Relations Board), No. 23-367, rejected the arguments of the National Labor Relations Board (the “Board”) to relax the standard that a district court must employ in deciding whether to implement injunctive relief under Section 10(j) of the National Labor Relations Act (the “Act”).  More ›

Hinshaw Insights for Employers Alert: Chicago Adopts Significant New Paid Leave Requirements

Chicago employers are facing significant new mandatory paid leave requirements following action by the Chicago City Council late last week. The new ordinance requires both paid leave and paid sick leave accruals, effectively doubling the minimum number of paid leave days from five to ten days annually. 

On our main website, read our Q&A to get all your employer compliance questions answered about the new ordinance.

NLRB Reverses 50-Year Precedent and Lessens Standard for a Bargaining Order Without a Secret Ballot Election

The National Labor Relations Board (NLRB) reversed over fifty years of established precedent on August 25, 2023, when it decided to overrule its 1971 decision in Linden Lumber and reinstate a modified version of its 1949 Joy Silk doctrine. The practical impact of the NLRB's decision in Cemex Construction Materials Pacific, LLC is that recourse to a private ballot election to test a union's claim of majority support may decline. This decision also likely will limit the right of employees to a private ballot election free of coercion as they decide whether to support a union as their exclusive bargaining representative. More ›

NLRB General Counsel Memo Argues Non-Compete Agreements Violate the NLRA

The General Counsel of the National Labor Relations Board (the Board) took aim at non-compete and non-solicitation agreements in Memorandum GC 23-08, issued on May 30, 2023. The General Counsel of the Board, Jennifer Abruzzo, said she believes that except in limited circumstances, the "proffer, maintenance, and enforcement of non-compete agreements" violates Section 8(a)(1) of the National Labor Relations Act (the Act). Memoranda such as this reflect the prosecutorial perspective of the General Counsel's office and direction to the Regional Directors on case handling. That said, Memorandum GC 23-08 is not a decision of the Board, a rule promulgated by the Board under its rule-making authority, or the result of a challenge to a Board decision in federal court. However, it certainly forecasts how this General Counsel and the Regions will assess non-competes and handle unfair labor practice charges involving these covenants. More ›

NLRB Decision that Broadly-Worded Confidentiality Provisions in Separation Agreements are Unlawful Raises Important Questions

The National Labor Relations Board (NLRB) recently issued a controversial decision concerning the use of non-disparagement and confidentiality provisions by employers in separation agreements. In McLaren Macomb and Local 40, RN Staff Council Office and Professional Employees International Union, AFL-CIO (Case 07-CA-263041), the NLRB found that including broadly-worded non-disparagement and confidentiality provisions in a separation agreement was unlawful, notwithstanding the lack of an intent to chill or limit the exercise of Section 7 rights of employees under the National Labor Relations Act (the Act). More ›

General Counsel of NLRB Seeks to Revoke Right of Employers to Recognize a Union on a Voluntarily Basis and Insist on a Private Ballot Election

Voluntary recognition of a union as the exclusive bargaining representative for employees within an identified bargaining unit of the employer can have potentially game-changing consequences for an employer. However, if the National Labor Relations Board (NLRB or Board) agrees to adopt the position of its General Counsel in a brief filed on April 11th in Cemex Construction Materials Pacific, LLC, No. 28-CA-230115., the landscape regarding union representation of employees in the workplace will change dramatically. It will become much easier for unions to organize and more difficult for employers to insist upon a private ballot election. Employees also will lose the right to vote in a private ballot election in many situations. More ›

Reacting to COVID-19 Delta Variant Outbreaks, OSHA Issues Updated Guidance

The Occupational Safety Health Administration (OSHA) issued updated guidance on August 13, 2021, to assist employers in protecting workers who are unvaccinated or otherwise at risk of contracting the virus. The guidance consists primarily of recommendations and seeks to align its approach with guidance issued by the Centers for Disease Control (CDC). CDC and OSHA guidance interact, but Employers have a specific legal obligation under OSHA to provide a safe and healthy workplace free from recognized hazards that are likely to cause death or serious physical harm. More ›