October 07, 2024
NLRB GC Issues Memo & Gives Employers 60 Days to Comply
Today, the General Counsel for the National Labor Relations Board issued memo GC 25-01, “Remedying the Harmful Effects of Non-Compete and Stay-or-Pay Provisions that Violate the National Labor Relations Act.”
In short, the memo explains that the GC’s position is that some of these provisions are presumptively unlawful unless they are narrowly tailored to minimize interference with employees’ protected rights under the NLRA. Said another way, if challenged, you have the burden of proof to show they are lawful.
Examples include policies that require employees to pay their employer if they leave their job within a certain period such as after the employer provides a sign-on or relocation bonus; as part of an educational repayment contract; or certain training repayment agreement provisions (TRAPs).
What now? Employers have until December 6, 2024, to cure any existing stay-or-pay provisions that advance a legitimate business interest. The General Counsel will not pursue cases involving “certain” preexisting stay-or-pay provisions if employers take affirmative action to conform the provisions to the framework and notify employees of the changes.
Talk to your company’s legal counsel and review the language of your related agreements and/or policies for compliance. This and other employment policy topics were covered in the November webcast, “Employee Handbooks: What They Say & What You Do.’ You can still access the archived recording here and earn 1.25 credits pre-approved by HRCI & SHRM. Click here for more information.
