NLRB GC Declares (Virtually) All Non-Compete Agreements Illegal

Snapshot Summary

Yes, the National Labor Relations Board ("NLRB") General Counsel ("GC") says virtually all non-compete agreements are illegal. However, although this is the GC's strong personal view, she does not directly make the law or establish precedent—NLRB action is still required to start that process. Even if the NLRB acts, the National Labor Relations Act ("NLRA") only covers non-supervisory employees. This is something to monitor, but not something that should cause you to automatically refrain from strategic and reasonable use of non-compete agreements. And, yes, it coincidentally aligns with the proposed rule from the Federal Trade Commission (see our prior alert here).