NLRB takes another swing at confidentiality, nonsolicitation, and noncompetes

In its decision in McLaren Macomb, the National Labor Relations Board (NLRB) addressed employees’ rights to organize under Section 7 of the National Labor Relations Act (NLRA), limiting severance agreement terms relating to confidentiality and noncompete clauses, as well as setting forth several other areas of concern. The Board’s general counsel (GC), Jennifer Abruzzo, issued a memorandum on March 22, 2023, expanding on the decision and noting the Board will carefully review noncompete clauses for any negative effect on Section 7 rights.

On May 30, 2023, the GC issued a new memorandum stating that noncompetes in most circumstances would be considered to “interfere with employees’ exercise of rights under Section 7 of the National Labor Relations Act.”