In a recent move following the McLaren Macomb case, the National Labor Relations Board (“NLRB”) general counsel (“GC”) issued guidance on October 7, 2024, indicating that “stay-or-pay” clauses may violate labor laws.
Key Points
- The GC’s memo warns employers that employment terms requiring employees to stay for a set time or repay certain expenses could be illegal.
- The GC plans to seek broader remedies for overly broad noncompete and stay-or-pay agreements.
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