Illegal Noncompetes Should Trigger Payouts, Top NLRB Lawyer Says

Employers using unlawful noncompete provisions could be hit with monetary remedies, the National Labor Relations Board’s top lawyer signaled in new guidance.

NLRB General Counsel Jennifer Abruzzo on Monday laid out her detailed vision for the types of workplace contracts, including noncompetes and so-called “stay-or-pay” provisions, that should be unlawful under federal labor law in an advice memo sent to all agency regional directors.

The missive comes after a Texas federal judge blocked an FTC rule seeking to ban nearly all noncompetes nationwide. Advice memos don’t constitute a change in board precedent, but publicize the general counsel’s agenda and prosecutorial ...