NLRB Weighs in on Stay-or-Pay Agreements

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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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NLRB’s Landmark Decision Reshapes Employer Work Rules: Stericycle, Inc. and Teamsters Local 628 (372 NLRB No. 113, 2023)

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In a pivotal move that again reshapes the landscape of employer-employee relations, the National Labor Relations Board (NLRB) recently issued a significant decision in the case of Stericycle, Inc. and Teamsters Local 628. This ruling (372 NLRB No. 113, 2023) ushers in a new era for evaluating employer work rules and policies, marking a departure from previous standards and a notable shift toward prioritizing employee rights.  In Stericycle, the Board reviewed the decision of an administrative law judge who found that the Respondent violated Section 8(a)(1) by maintaining certain rules for its employees that  addressed personal conduct,

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Noncompete Agreements Under Siege

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There has always been a tension between two important competing principles that underlie American law when it comes to noncompete agreements.  First, is the freedom to contract, which gives individuals the right to bargain with others over nearly any topic and come to a good, bad, or indifferent deal.  For example, employers argue that they should have the right to contractually protect their trade secrets and the time and investments they make in developing customer relationships and goodwill. 

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U.S. Supreme Court Upholds Class Action Waivers in Arbitration Agreements

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Yesterday, May 21, 2018, the United States Supreme Court finally resolved a split among the federal circuit courts regarding whether the National Labor Relations Act (“NLRA”) prohibits businesses from requiring employees to sign arbitration agreements that waive their right to engage in a class action against their employer.  Epic Systems Corp. v. Lewis (No. 16–285).

At issue were two federal laws that appear to conflict with one another.

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President Obama’s U.S. Supreme Court Nominee Shows Consistent Deference to Employment Agencies

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Today, President Obama nominated Merrick B. Garland as his choice to fill the U.S. Supreme Court vacancy left by the recent death of Justice Antonin Scalia. Chief Judge Garland was appointed to the U.S. Court of Appeals for the District of Columbia by President Clinton in 1997 and became Chief Judge on February 12, 2013. He received wide, bipartisan support for his nomination to the U.S. Court of Appeals. Seven of the Republican Senators who voted for his 1997 nomination still serve in the U.S.

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NLRB Attacks Dish Network’s Solicitation and Distribution Policy

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On March 3, 2016, in Dish Network, LLC, 363 NLRB No. 141, the National Labor Relations Board (“NLRB”) struck down Dish Network’s policy prohibiting certain solicitation and distribution of literature in the workplace.  The policy in question read:

In the interest of maintaining a  proper business environment and preventing interference with work and inconvenience to others, employees … may not distribute literature … of a personal nature by any means,

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Revise Your Handbook Before the NLRB Does it for You

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I recently re-reviewed the NLRB General Counsel’s March 18, 2015 Memorandum regarding lawful and unlawful employer policies. I found the Memorandum even more disturbing after my second review. The National Labor Relations Board has been actively reviewing and ruling on the legality of both union and nonunion employers’ employment policies. Most of the rulings deal with whether the policies violate employees’ Section 7 rights under the NLRA and focus largely on the following topics:

  1. Rules regarding confidentiality;

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Review and Revise Your Handbook Before the NLRB Does it for You

Skip SperryBlog Leave a Comment

I recently re-reviewed the NLRB General Counsel’s March 18, 2015 Memorandum regarding lawful and unlawful employer policies. I found the Memorandum even more disturbing after my second review. The National Labor Relations Board has been actively reviewing and ruling on the legality of both union and nonunion employers’ employment policies. Most of the rulings deal with whether the policies violate employees’ Section 7 rights under the NLRA and focus largely on the following topics:

  1. Rules regarding confidentiality;

 » Read more about: Review and Revise Your Handbook Before the NLRB Does it for You  »

Review and Revise Your Handbook Before the NLRB Does it for You

Skip SperryBlog Leave a Comment

I recently re-reviewed the NLRB General Counsel’s March 18, 2015 Memorandum regarding lawful and unlawful employer policies. I found the Memorandum even more disturbing after my second review. The National Labor Relations Board has been actively reviewing and ruling on the legality of both union and nonunion employers’ employment policies. Most of the rulings deal with whether the policies violate employees’ Section 7 rights under the NLRA and focus largely on the following topics:

  1. Rules regarding confidentiality;

 » Read more about: Review and Revise Your Handbook Before the NLRB Does it for You  »

Review and Revise Your Handbook Before the NLRB Does it for You

Skip SperryBlog Leave a Comment

I recently re-reviewed the NLRB General Counsel’s March 18, 2015 Memorandum regarding lawful and unlawful employer policies.  I found the Memorandum even more disturbing after my second review.  The National Labor Relations Board has been actively reviewing and ruling on the legality of both union and nonunion employers’ employment policies.  Most of the rulings deal with whether the policies violate employees’ Section 7 rights under the NLRA and focus largely on the following topics:

  1. Rules regarding confidentiality;

 » Read more about: Review and Revise Your Handbook Before the NLRB Does it for You  »