Warrick & Boyn, LLP, Elkhart, Indiana

Menu

Skip to content
  • Home
  • Firm Profile
  • Areas of Practice
  • Attorneys
    • Gary D. Boyn
    • Cynthia S. Gillard
    • Randall G. Hesser
    • Ashli L. Hunsberger
    • Dean E. Leazenby
    • Christopher Pottratz
    • Jamie Richardson
    • Timothy S. Shelly
    • Rachel A. Schnetzler
    • Thomas E. Warrick
    • James V. Woodsmall
  • Blog & News
  • Contact

NLRB General Counsel Announces That Noncompete Agreements Are Usually Unlawful

June 1, 2023

In a memo released May 30, National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo announced her opinion that noncompete agreements violate the National Labor Relations Act (NLRA). The announcement, which applies to nonunionized and unionized employers, may result in unfair labor practice charges for any employer that uses noncompetes.

The memo proclaims that overbroad noncompete agreements are unlawful because they chill employees from exercising their rights under Section 7 of the NLRA, which protects employees’ rights to take collective action to improve their working conditions.

Specifically, Ms. Abruzzo believes that these agreements interfere with employees’ ability to:

  • Concertedly threaten to resign to secure better working conditions.
  • Carry out concerted threats to resign or otherwise concertedly resign to secure improved working conditions. 
  • Concertedly seek or accept employment with a local competitor to obtain better working conditions. 
  • Solicit their co-workers to go work for a local competitor as part of a broader course of protected concerted activity.
  • Seek employment, at least in part, to specifically engage in protected activity, including union organizing, with other workers at an employer’s workplace.

Practical Impact of Memo

As with all general counsel memoranda, Ms. Abruzzo’s memo is not a statement or ruling of the law. The general counsel does not make law, rather she prosecutes the NLRA, and the National Labor Relations Board makes the law. Her legal position would only become law if the NLRB issued a decision or an administrative rule that agreed with the general counsel’s position.

However, since the general counsel sets the stage for regional offices to file complaints against companies, a case will very likely be heading to an administrative law judge and later the NLRB itself. Thus, an employer that uses noncompete agreements faces the prospect of an unfair labor practice charge and subsequent complaint from the NLRB’s regional offices. Consequently, as when the Federal Trade Commission recently proposed barring nearly all noncompetes, employers should consider eliminating the use of noncompetes, particularly with non-management/non-supervisory employees with little to no access to proprietary or trade secrets.

If you have any questions about this or any other employment law matter, please contact Dean Leazenby or any of the other attorneys at Warrick & Boyn, LLP.

Post navigation

← The NLRB Revises Employer Discipline Standards Supreme Court Rules Against Striking Workers Over Wasted Concrete →

Recent News

  • Jamie Richardson: Legal Expertise with a Heart for Community
  • FLSA Misclassification Can Be Very Costly
  • Corporate Transparency Act Reporting: Off Again (For Now)
  • The FMLA Can Apply to Adult Siblings

Warrick & Boyn, LLP

861 Parkway Avenue
Elkhart, Indiana 46516
P • (574) 294-7491
F • (574) 294-7284

Warrick & Boyn, LLP

13 hours ago

Warrick & Boyn, LLP
Understanding employee classification under the Fair Labor Standards Act is crucial for employers. Misclassification can lead to significant and costly complications. Read more from partner, Dean E. Leazenby, about a recent Sixth Circuit Court of Appeals decision on this matter at warrickandboyn.com/flsa-misclassification-can-be-very-costly/.The attorneys at Warrick & Boyn possess the expertise and experience to advise and represent businesses on a wide range of employment matters, including wage and hour issues, workers' compensation, discrimination claims, personnel policies, and labor practices. Call us today to leverage our experience for your business's success. ... See MoreSee Less
View on Facebook
· Share

Share on Facebook Share on Twitter Share on Linked In Share by Email

Warrick & Boyn, LLP

3 days ago

Warrick & Boyn, LLP
Congratulations to Gary Boyn, of counsel, at Warrick & Boyn.Thank you, Gary, for your dedication and invaluable contributions to our success! ... See MoreSee Less
View on Facebook
· Share

Share on Facebook Share on Twitter Share on Linked In Share by Email

© 2025 • Warrick & Boyn, LLP

The Warrick & Boyn, LLP website is intended as a general information resource. Any information available on this website is not intended to be legal advice. Warrick & Boyn, LLP is not responsible for any damages or injuries resulting from your use of this website. These include (but are not limited to) damages or injuries caused by any: use or inability to use this site; use or inability to use any site to which you access from this site; interruption of service; defect; delay in operation or transmission; computer virus; malicious code; line failure; or point of access failure. Any information transmitted to this site or to any attorney at this site will not necessarily be held in confidence and may be intercepted by a third party.