On Feb. 14, the National Labor Relations Board’s (NLRB’s) Acting General Counsel, William Cowen, rescinded two general counsel (GC) memos opining that virtually all non-compete and stay-or-pay agreements would violate the National Labor Relations Act (NLRA). This action does not resolve all the non-compete agreement issues currently in play, but it does signal a shift in NLRB thinking on the issues.

On October 7, National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo sent a memo to staff outlining heightened enforcement against illegal non-compete agreements. The 17-page memo outlines Abruzzo’s intention to assess costs to violators of the non-compete rules. In addition, the memo to staff indicates Abruzzo’s intention to challenge employer policies that require employees to repay training costs or other penalties if they leave within a specified time frame.