Non-compete agreements are facing increased scrutiny, with the National Labor Relations Board (NLRB) joining the fray. This Memo follows the Federal Trade Commission’s (FTC) recent proposal to ban most non-compete restrictions, providing very limited exceptions. In a recent memo, the NLRB's General Counsel Jennifer Abruzzo stated that non-competes in employment and severance agreements generally violate the National Labor Relations Act (NLRA). This development raises concerns for employers, but it's essential to understand the memo's limitations and potential challenges the NLRB may encounter.

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