On May 30th, National Labor Relations Board Cousel, Jennifer Abruzzo, issued a memo indicating that it is her view that non-compete agreements in employment contracts violate the National Labor Relations Act except in limited circumstances. It is Abruzzo's view that they are unlawful because they stop employees from exercising their rights under Section 7 of the NRLA. She outlines these interferences specifically:
1. Employee's ability to threated to resign to secure better working conditions.
2. Employee's ability to carry out concerted threats to resign to secure improved working conditions.
3. Employee's ability to seek or accept employment with a local competitor to obtain better working conditions.
4. Solicit co-workers to go to work for a local competitor as a part of a broader course of protected activity.
5. To seek employment to specifically engage in protected activity including union organizing with other workers.
It is Abruzzo's believe that non-competes could be lawful if it only restricts an individual's managerial or ownership interests in a competing business or true independent-contractor relationship.
Read more at: NLRB General Counsel Issues Memo on Non-competes Violating the National Labor Relations Act | National Labor Relations Board