NLRB Revokes Key Labor Policies

On February 14, 2025, National Labor Relations Board (NLRB) Acting General Counsel William Cowen issued Memorandum 25-05, rescinding over a dozen policy memoranda established by his predecessor, Jennifer Abruzzo. This action signifies a strategic shift in the NLRB’s approach to several contentious labor issues.

Among the rescinded documents are memoranda that addressed the rights of student-athletes under the National Labor Relations Act (NLRA) and the disclosure obligations of educational institutions under the Family Educational Rights and Privacy Act (FERPA). The withdrawal of these specific memos suggests a potential reevaluation of policies related to student organizing and privacy rights within academic settings.

Notably, Acting General Counsel Cowen also rescinded memoranda concerning non-compete agreements and “stay-or-pay” provisions. Previously, under Abruzzo’s guidance, the NLRB viewed the maintenance and enforcement of non-compete clauses and certain repayment agreements as violations of the NLRA, arguing they restricted employees’ Section 7 rights to engage in protected concerted activities. Cowen’s rescission of these memoranda indicates a departure from this perspective, potentially altering the federal stance on the enforceability of such restrictive covenants.

This comprehensive rescission reflects Cowen’s intent to address the existing backlog of cases and to realign the NLRB’s policies. Employers, unions, and employees should anticipate forthcoming guidance that will clarify the Board’s positions on these critical labor issues.