An NLRB ruling that nondisparagement or confidentiality clauses in separation agreements are unlawful if they would restrict or interfere with an employee's labor rights applies retroactively, according to a new General Counsel guidance memo.
The NLRB put the brakes on the use of nondisparagement and confidentiality clauses in separation agreements if they require employees to waive their rights under the National Labor Relations Act.
The Federal Trade Commission estimated that banning noncompete agreements would increase workers' total earnings by $250 to $296 billion per year.
If signed by President Biden as expected, the Speak Out Act will make nondisclosure agreements (NDAs) and nondisparagement contract clauses relating to disputes involving sexual assault and sexual harassment unenforceable by the courts if they were signed before a dispute arose.
The District of Columbia will implement its restrictions against the use of noncompete agreements beginning October 1, following delays to allow for amendments to be enacted.
A new law bars employers from requiring or asking employees to sign provisions that bar them from disclosing illegal conduct in the workplace.
Employers in Colorado who require an employee to enter into an unlawful noncompete agreement soon may be subject to criminal penalties.
Changes to the Illinois Freedom to Work Act set criteria that must be met for a noncompete agreement to be valid and enforceable, and impose stricter limits on which employees may be subject to such an agreement.
President Joe Biden issued an Executive Order on July 9 encouraging the Federal Trade Commission to use its rulemaking authority to ban or limit the use of unfair noncompete agreements.
News: Guidance for HR on the advantages and restrictions related to using restrictive covenants.
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