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In the first ten days of his second term, President Trump has already made significant moves impacting the labor and employment landscape. Some actions were expected (see our prior predictions), while others are unprecedented.

In May 2023, Jennifer A. Abruzzo (the “General Counsel”), General Counsel for the National Labor Relations Board (“NLRB”), took the position that certain non-compete provisions violate the National Labor Relations Act (“NLRA”) (as discussed here) by restricting employee mobility. Now, in an October 7, 2024, memorandum (GC 25-01), the General Counsel has expanded on the topic of employee mobility by targeting “stay-or-pay” provisions.

It takes two to tango, but the National Labor Relations Board (“Board”) reaffirmed that it might only take one to engage in protected concerted activity.

The drumbeat of opposition to non-compete agreements is getting even louder, as New York is now poised to enact a law that, if passed, would create sweeping prohibitions against non-competes in that state.

While employers wait to see whether, and to what extent, the Federal Trade Commission enacts its proposed rule banning non-competes, the Office of the General Counsel for the National Labor Relations Board (the “NLRB”) has joined the fray, denouncing the legality of restrictive covenants.

Employers (hopefully) are aware that their employees are afforded certain rights under the National Labor Relations Act (the “NLRA” or “Act”), including the right to self-organization, to bargain collectively, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.