Impact for Employers: The NLRB General Counsel Doubles Down on Restrictive Covenants and Stay-or-Pay Provisions

The General Counsel of the National Labor Relations Board ("NLRB") issued Memorandum GC 25-01 on October 7, 2024, which establishes her intent to "urge the Board not only to find certain non-compete provisions unlawful, but also, as fully as possible to remedy the harmful effects on employees when employers use and apply them."

The General Counsel has proposed a 60-day period, starting from the issuance of the October 7 Memorandum, for employers to address and rectify any existing "stay-or-pay" provisions that may not align with legitimate business interests. This directive necessitates that employers quickly evaluate their current provisions in light of the new guidelines, as many restrictive covenants and "stay-or-pay" clauses are likely to violate Section 7, according to the General Counsel's criteria. More ›

NLRB Restricts Employee Use of Employer-Provided Email for Section 7 Purposes

Earlier this week, the National Labor Relations Board ("Board") issued an important decision, returning to its prior precedent with respect to employee use of employer-provided email for Section 7 purposes. In Caesars Entertainment and International Union of Painters and Allied Trades, District Council, the Board overruled the Obama-era decision of Purple Communications, Inc. and returned to the rationale the Board had adopted during the George W. Bush era in Register Guard.

The Board held that the Purple Communications decision was out of line with its prior precedent and impermissibly discounted employers' property rights with respect to their IT resources while overstating the importance of those resources to Section 7 activity. In returning to the Register Guard holding, the Board recognized and created an exception to the Register Guard rule in cases where an employer's email system is the only reasonable means for employees to communicate with one another. More ›

EEOC Petitions the NLRB to Change Legal Test for Considering Whether Employee Racial Outbursts are Protected NLRA Activity

In response to an amicus brief submitted by the Equal Employment Opportunity Commission (EEOC), the National Labor Relations Board (NLRB) has agreed to review General Motors LLC, a case which reveals a tension between the National Labor Relations Act (NLRA) and Title VII of the Civil Rights Act of 1964 regarding employee racial outbursts during union activity. The EEOC requested the NLRB to change its test for determining whether or not an employee outburst is protected by the NLRA when it includes racially-charged language. The NLRB's decision could provide employers with more flexibility in disciplining employees for racial misconduct during union activity. More ›

NLRB to Propose Rule Extending Employer Property Rights

Several recent decisions by the National Labor Relations Board (NLRB) have analyzed the balance between employer property rights and union organization rights under the National Labor Relations Act (NLRA). These decisions appear to shift the balance in favor of employers. It is anticipated that the NLRB will propose a rule in the near future clarifying employer property rights in light of the recent decisions that have significantly modified past precedent. More ›

NLRB Provides Section 7 Guidance to Employers Regarding Drafting of Arbitration Agreements

There is an ongoing tension between the National Labor Relations Board (the "Board") and employers who seek to expand the use of an arbitration forum to resolve employment disputes. The U.S. Supreme Court has continued to endorse the idea that arbitration is both an important part of national labor policy and a reasonable alternative to litigation in court for employment-related disputes. As the Board issues new opinions and interprets guidance from the Supreme Court, employers are in a position to gain better insight and avoid problematic drafting mistakes in arbitration agreements. More ›

NLRB to Revisit Issue of When Employees Lose NLRA Section 7 Protection When Using Threatening and Demeaning Language

While discussing work assignments with his supervisor, an employee uses abusive and profane language. In another incident, the employee disrupts a workplace meeting by playing loud music with racial and political overtones. These and other behaviors led to discipline which was in turn challenged by the employee as an unfair labor practice. In General Motors LLC and Charles Robinson (14-CA-197985; 14-CA-208242), the National Labor Relations Board (NLRB) requested public comment on when insubordinate, threatening or intimidating behavior should not constitute protected activity under Section 7 of the National Labor Relations Act (NLRA). It is not uncommon for the NLRB to request public comment in situations where there may be a policy shift.

The facts of General Motors LLC and Charles Robinson are relatively straightforward. Charles Robinson is a Union Committee representative, and he could be characterized as a zealous supporter of worker rights in a unionized environment. From a management perspective, he could just as easily be deemed a disruptive, uncooperative, intimidating, and threatening employee. Robinson was disciplined by the employer for essentially three reasons: More ›

The Fight for $15 and the NLRB

In-N-Out Burger, Incorporated (In-N-Out) found itself on the wrong side of National Labor Relations Board (NLRB) unfair labor practice proceedings for prohibiting its employees from "wearing any type of pin or stickers" on their uniforms. The Fifth Circuit, in In-N-Out Burger, Incorporated v. National Labor Relations Board (No. 17-60241, decided July 6, 2018), upheld a NLRB finding that In-N-Out violated Section 8(a)1 of the National Labor Relations Act by prohibiting its employees from wearing a "Fight for $15" button and for maintaining an overly broad uniform policy. More ›

Lawful, Unlawful, or It Depends? NLRB Issues New Guidance on Employer Policies Affecting Section 7 Rights

Earlier this month, the National Labor Relations Board's (NLRB) General Counsel issued Memorandum GC-18-04 providing guidance on handbook rules in light of the Board’s Boeing Company decision. In Boeing, the Board reevaluated when a seemingly neutral work rule, handbook rule, or employment policy violates the rights of workers granted by Section 7 of the National Labor Relations Act (NLRA). In doing so, it adopted a new test balancing the negative impact a given rule may have on an employee’s ability to exercise his or her Section 7 rights versus the employer’s right to maintain a disciplined and productive workplace. It also laid out three categories of rules: those that are always lawful, those that are usually always unlawful, and those it depends-type rules falling into the middle category. The GC’s guidance sorts common workplace policies into these three buckets. More ›