In an article published by Bloomberg Law, Brooks Pierce partner Natalie Sanders analyzes a recent memo from the National Labor Relations Board (NLRB) general counsel that calls non-competes unlawful, and describes some practical consequences for employers today.
Last year, the Federal Trade Commission (FTC) and the NLRB entered into a memorandum of understanding, agreeing to share information, cross-train staff and consult with each other on law enforcement efforts. The memo specifically mentioned non-competes among their common enforcement interests. Attention from one agency will pique the interest of the other when it comes to such agreements. The FTC’s proposed rule is not expected to be finalized until next year, and the general counsel memo is merely a statement of that office’s interpretation of the law.
“Non-competes should be restricted to as few employees as possible and only to those with a solid business justification for a non-compete agreement. That justification cannot simply be to restrict competition. Rather it should be something like protecting trade secrets or confidential information or maintaining the value of a purchased business,” writes Sanders.
Sanders provides counsel and defense to businesses in all aspects of the employment relationship. Her 25 years of experience as an attorney, operations manager, entrepreneur and community volunteer allow her to relate well to management and provide nuanced guidance in complex matters.
Bloomberg Law subscribers may access the full article here.