In a notable shift under the Biden administration, the National Labor Relations Board (NLRB) has heightened restrictions on employers to advance employee rights under Section 7 of the National Labor Relations Act (the “Act”). As part of this initiative, the Board has set its sights on restraining the usage of employee non-compete agreements and has delivered a specific order in regard to their enforcement.
In May 2023, the NLRB publicized its plan to put the brakes on the use of employee non-compete agreements. These agreements, commonly used by employers to deter former employees from taking up employment with competitors, could now face tighter scrutiny and regulation. This move comes amid growing debate over whether these non-compete clauses infringe on worker’s rights, ultimately hindering their freedom of movement in the labor market.
Earlier in February 2023, the Board passed a significant order restricting the usage of certain work rules at McLaren Macomb. Though the specifics of the order have not been made public, this action suggests that the NLRB is turning its attention toward the provisions of employee handbooks and internal rules, possibly identifying elements they consider restrictive or prohibitive under the Act.
The NLRB’s intensified actions signal a broader move to enforce Section 7 protections under the Act. This section specifically safeguards employees’ rights to partake in “protected, concerted activity”, essentially permitting employees to collectively take steps to improve their working conditions.
These recent developments indicate a strategic effort on the part of the NLRB to more strictly police employer practices that may encroach on the protected rights of employees. However, it remains to be seen how these adjustments will be adopted and enforced in the practical realm.
Legal experts are closely observing prospective changes on the horizon and encourage businesses and law firms to pay careful attention to the NLRB’s decisions. Continuous updates and a deeper understanding of these matters are crucial to avoiding potential legal pitfalls and maintaining a compliant working environment.
For more details on the referenced developments, check the original article here.