NLRB and FTC crack down on non-compete agreements, ALJ rules they violate NLRA, potentially leading to NLRB review.
The National Labor Relations Board (NLRB) and FTC are cracking down on non-compete agreements, with an Administrative Law Judge (ALJ) ruling that overly broad non-compete and non-solicitation provisions violate the National Labor Relations Act (NLRA). This is the first ALJ decision to support the view that non-competes breach the NLRA, potentially leading to a review by the National Labor Relations Board. The ruling aims to reduce the "chilling effect" on employees' exercise of their Section 7 rights and protect their freedom to unionize.
June 27, 2024
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