NLRB GC: Employer Noncompete, Confidentiality Terms Not Unfair Labor Practices
In-house employment and labor counsel for employers that use noncompete or confidentiality agreements with staff must review this guidance, as it confirms these standard terms do not constitute unfair labor practices under NLRB rules, lowering enforcement risk.
The NLRB General Counsel issued an advisory opinion addressing whether standard noncompete and confidentiality provisions in employee agreements constitute unfair labor practices (ULPs) under the National Labor Relations Act. The GC concluded these common contractual terms do not inherently violate NLRA protections for concerted employee activity, as they do not automatically restrict workers’ rights to discuss wages, working conditions, or organize. The guidance departs from prior NLRB efforts to scrutinize restrictive employment agreements as potential ULPs, providing employers with greater clarity for drafting and enforcing these provisions. In-house counsel should review existing agreement templates to ensure alignment with the GC’s outlined parameters, and update related onboarding and offboarding processes to reflect the clarified enforcement stance.