National Labor Relations Board General Counsel issued a memorandum explaining noncompete provisions in employment is an unfair labor practice except in limited circumstances under the NLRA. This does not apply to noncompete agreements offered to supervisory or managerial employees.
Employers will need to rethink the terms they include in severance agreements under the National Labor Relation Board’s ruling issued in McLaren Macomb. Importantly, this decision applies to employers who are unionized, as well as those who do not have any unionized employees.