In this episode of Employment Law This Week®, we examine the coordinated efforts by the Equal Employment Opportunity Commission (EEOC), Federal Trade Commission (FTC), and U.S. Department of Justice (DOJ) to target diversity, equity, and inclusion (DEI) initiatives.
The efforts raise critical implications for private employers' compliance strategies.
Epstein Becker Green attorneys Susan Gross Sholinsky and Daniella Lee provide practical guidance on assessing risk, reviewing external communications, and remaining compliant in this evolving landscape.
As another busy year for our Employment, Labor & Workforce Management clients came to a close, we asked our attorneys what issues were top of mind for our nationwide clients in 2025.
The results of this informal survey provide the opportunity not only to reflect on the challenges confronted by the global organizations we are privileged to represent, but also to prepare for what the legal landscape might hold in 2026.
National Labor Relations Board (“Board”) General Counsel Jennifer Abruzzo (“Abruzzo”) issued a General Counsel Memo (Memo GC 25-01) last week signaling that employers could face civil prosecution and significant monetary remedies for using non-compete and so-called “stay-or-pay” provisions in agreements with their employees.The new memo, issued on October 7, 2024, builds on Abruzzo’s earlier General Counsel Memo issued in May 2023, where, as we reported, she outlined her belief that nearly all post-employment non-competes violate employees’ rights under the National Labor Relations Act (the “Act”).
Since Abruzzo’s May 2023 memo, employers have witnessed a number of significant developments in this space, including the Federal Trade Commission’s (“FTC”) issuance of a rule in April 2024 banning the use of most non-competes and a subsequent decision by a Texas federal judge blocking that FTC rule. In June 2024, an NLRB Administrative Law Judge issued a ruling in a case involving an Indiana HVAC company finding that non-competes and non-solicitation clauses violate the Act, a decision currently being appealed to the Board.
In her October 7, 2024 memo, Abruzzo again urges the Board to find non-competes with all employees who are subject to the Act’s jurisdiction (nonmanagerial and nonsupervisory employees) to violate the Act except in a few limited circumstances, arguing that such provisions are frequently “self-enforcing” and deter employee mobility. She also advocates for “make whole” remedies where employers are found to have continued to maintain unlawful non-competes. Specifically, the memo argues that merely voiding such provisions is insufficient and that employees should be afforded the right to seek compensatory relief for the “ill effects” that flow from complying with “unlawful non-compete provisions.”
As featured in #WorkforceWednesday®: This week, we’re spotlighting the Federal Trade Commission’s (FTC’s) decision to withdraw from a federal labor pact; the Equal Employment Opportunity Commission’s (EEOC’s) report on alleged underrepresentation in science, technology, engineering, and mathematics (STEM)-related jobs; and an appellate court’s affirmation of the National Labor Relations Board’s (NLRB’s) McLaren Macomb decision.
Recent Updates
- Watch: Change Is Coming from the EEOC—but When? - Employment Law This Week
- The EEOC Moves to End EEO Reporting – Comments Invited Through August 24
- Watch: New York Employers Face New Restrictions on Severance, Tuition Repayment, and Sick Time - Employment Law This Week
- Attention Connecticut Warehouse Employers: Deadline for New Quota Notices Approaching
- New Jersey Department of Labor’s Guidance Clarifies Expanded Job Protected Leave Rights for Employees