J.O. Mory, Inc. represents a continuation of the Board’s attack on noncompetition agreements and a notable expansion to now target nonsolicitation covenants. Employers should take particular care to review the language of nonsolicitation agreements with covered employees to ensure that they are not likely to be construed to chill employees’ — and former employees’ — engagement in protected activity.
To view the full alert, visit the Faegre Drinker website.
The 2023 rule, which was set to take effect on March 11, would have expanded the joint employer test to include reserved and indirect control — potentially exposing franchisors to claims that their franchise agreements and brand standards make them joint employers of their franchisee’s employees for purposes of collective bargaining and labor disputes. The federal district court concluded that the 2023 rule is unlawful because it would expand joint employment beyond the outer limits set by the common-law definition of employment. Other courts are likely to weigh in. The NLRB may appeal to the Fifth Circuit. A parallel suit brought by the Service Employees International Union regarding the scope of the 2023 rule is currently pending before the D.C. Circuit. Either or both of those cases may ultimately go to the U.S. Supreme Court. We conclude with two relevant handouts that identify franchisors’ best practices.
To view the full alert, visit the Faegre Drinker website.
The decision held that the basketball players were employees of Dartmouth because the college had the right to control their work by scheduling practice times, strictly managing away-game travel, and issuing a handbook of rules, which players must follow; and because the college compensated the players for their work. The decision dismisses Dartmouth’s contention that athletic clothing and equipment, which the school provides equally to all team members free of charge, is not salary because the college does not provide more of these items to its starters compared to nonstarters. While the Board rejected Dartmouth’s request to stay the election pending appeal, a full appeal of the merits of the regional directors will soon see the Board members weigh in on this extraordinary extension of the agency’s jurisdiction into amateur athletics.
To view the full alert, visit the Faegre Drinker website.
On October 19, 2023, Faegre Drinker Partner Ryan Funk gave remarks at the 28th Annual Bernard Gottfried Labor Law Symposium, which was sponsored by the National Labor Relations Board, the Wayne State Law School, and the State Bar of Michigan. In his remarks, Funk critiqued three recent changes to the National Labor Relations Board’s remedial scheme.
Discussing Thryv, Inc., Funk voiced his concern that the labor law community was growing out of touch with workers, employers, and the public, and changing remedies in ways that hurt the overall mission of the agency.
Continue reading “Key Takeaways From the 28th Annual Bernard Gottfried Labor Law Symposium”
A recent employer settlement with a National Labor Relations Board Region shows that the General Counsel is not just focused on noncompetition restrictions, but also nonsolicitation restrictions that the General Counsel believes are overbroad.
The General Counsel of the National Labor Relations Board (the Board) issued new guidance announcing her position that certain noncompete agreements violate the National Labor Relations Act. Citing McLaren Macomb, the General Counsel urged the Board to adopt her position regarding noncompete agreements, arguing that the Board already embraced a similarly restrictive standard for analyzing the lawfulness of severance agreements.
Continue reading “NLRB GC’s Latest Guidance Expands Restrictions to Noncompete Provisions”