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.
