Erik W. Weibust and Erin E. Schaefer, attorneys in the Litigation & Business Disputes and Employment, Labor & Workforce Management practices, co-authored an article in Law360, titled “Novel NLRB Action Highlights Aggressive Noncompete Stance.” (Read the full version – subscription required.)

Following is an excerpt (see below to download the full version in PDF format):

The National Labor Relations Board has found its first target under guidance issued in a May 30 memo from its general counsel, which claimed that noncompete agreements may violate the National Labor Relations Act.

In its first known enforcement action targeting an employer's noncompete agreement, the NLRB issued a complaint against Michigan cannabis processor Berry Green Management Inc., an affiliate of MKX Oil Company.

The alleged labor law violations were recently resolved in a private settlement.[1] The enforcement action, which was filed on Jan. 20, predates the May 30 guidance memo.

While the settlement details are private, the NLRB's complaint against Berry Green demonstrates that the NLRB general counsel is already in a litigation posture testing the legality of her novel noncompete theory.

Jump to Page

Privacy Preference Center

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.

Strictly Necessary Cookies

These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.

Performance Cookies

These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.