NLRB GC: Employers Cannot Restrict Workers From Moonlighting

In a new memorandum, the General Counsel of the National Labor Relations Board (NLRB) stated that restricting employees from holding outside or secondary employment is a violation of federal labor law.

The issue arose when a regional office asked for input on three provisions of an employment agreement, including a "Duties of Employees" provision which read:

"Except as hereinafter provided, the Employee shall at all times during the continuance of this Agreement devote her full time to the conduct of the business of the Employer and shall not directly or indirectly, during the term of this Agreement engage in any activity competitive with or adverse to the Corporation's business or welfare whether alone, or as a partner, officer, director, Employee, advisor, agent or investor of any other individual corporation, partnership, joint venture, association, entity or person."