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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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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DoL Releases 2012 FMLA Survey Results on the Act’s 20th Anniversary

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The following is excerpted from the survey results.  The full reports can be found herehere, and here.

In 2012, Abt Associates surveyed 1,812 worksites and 2,852 employees about experiences with family and medical leave.  The worksite survey includes both sites that are covered by the Family and Medical Leave Act (FMLA) and those that are not covered.  The employee survey includes employees that took leave,

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