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ARTICLE · 10 JANUARY 2025

NLRB Judge Upholds Non-Compete Provision

Employers seeking to protect their business interests through non-competes scored another win recently.

United StatesEmployment and HR

Employers seeking to protect their business interests through non-competes scored another win recently. Permobil, Inc., a manufacturer of wheelchairs and wheelchair accessories, faced claims that it violated the National Labor Relations Act (NLRA) with an overly restrictive employment agreement.

The claim arose after Permobil sued Mark Westphal for violating the non-compete provision of his employment agreement. The provision barred former employees from working for competitors in the United States for one year. In addition, the employment agreement stated that workers cannot disclose confidential or proprietary information or disparage the company and its products.

National Labor Relations Board General Counsel Jennifer Abruzzo brought the matter before the NLRB, contending that a non-compete violated an employee's Section 7 rights under the NLRA by preventing the employee from voluntarily quitting to force their employer to meet their demands.

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