Non-Competes, Including “Pay-or-Stay” Provisions, Under Continued Assault

Husch Blackwell partner Tyler Paetkau joins Labor Law Insider host Tom Godar to discuss the latest assault on non-compete agreements and their various iterations. While an August 2024 district court order enjoined the Federal Trade Commission’s recent action to ban virtually all non-compete agreements, and the FTC has since withdrawn its noncompete opinion, the National Labor Relations Board (NLRB) continues its campaign against non-competes, with NLRB General Counsel Jennifer Abruzzo publishing a memo last month doubling down on the policy position reflected in her May 2023 memo, namely, that “overbroad” non-competes are unlawful.Listen to this instructive exchange between Tom and Tyler as they walk through recent pronouncements from the NLRB on non-compete agreements and the remaining exceptions that might provide an opportunity for employers to continue with narrowly tailored agreements to assist employees on accepting employment opportunities, finding educational opportunities, and more.