In a recently unfolded development, the National Labor Relations Board (NLRB) appears set to consider whether noncompete agreements, despite their potential legality under state law, infringe upon the National Labor Relations Act. This move was foreshadowed earlier, and now brings into focus an issue that could entail substantial implications for legal professionals and corporations alike.
Noncompete agreements essentially restrict an employee’s ability to work in a similar profession or trade against their former employers for a certain period, often on a geographical level. Deployed in several industries, these agreements have been subject to increasing scrutiny and disputes in recent years.
With the NLRB now inclining to weigh in on the matter, organizations and legal experts must brace themselves for potentially significant changes in the handling and enforceability of these agreements. The landscape surrounding noncompete clauses could reshape depending on the verdict and the interpretive approach taken by the NLRB.
This development augurs an elevated attention to labor relations by the NLRB, drawing on increased interests to review the nexus between noncompete agreements and their impact on labor rights as dictated by the National Labor Relations Act. This situation further warrants the need for companies and their legal advisors to review and prepare for potential modifications to their current noncompete agreements and practices.
For further details on these changes, tap into this JD Supra article provided by Proskauer.