On Feb. 14, 2025, the Acting General Counsel (GC) of the National Labor Relations Board (NLRB) issued a memorandum rescinding several policies issued by the previous NLRB GC, including memorandums addressing severance and non-compete agreements, captive audience bans, and the rights of student-athletes under the National Labor Relations Act (NLRA).
Background – GC memorandums are not binding law; however, they inform NLRB field offices of the GC’s NLRA enforcement priorities. These memorandums are essential resources for employers, offering guidance on how the board interprets and applies federal labor law in various situations.
Overview of the Memorandum – The GC memorandum impacts 31 memorandums issued between 2021 and 2025. Among the most impactful rescissions include the following memorandums that are no longer in effect:
- GC 25-01 Remedying the Harmful Effects of Non-Compete and “Stay-or-Pay” Provisions that Violate the NLRA;
- GC 23-08 Non-Compete Agreements that Violate the NLRA; and
- GC 21-08 Statutory Rights of Players at Academic Institutions (Student-Athletes Under the NLRA).
Additionally, the memorandum signals that the NLRB will take a different approach regarding recent board decisions, including determining the legality of severance agreements and captive audience bans and when employers are required to bargain with unions. The memorandum also indicates that the GC will provide further guidance on how employers can respond to union recognition demands. While the memorandum does not reverse the current application of these decisions, it does indicate the NLRB will likely have a different view on important longstanding federal labor laws.
Employer Takeaways – The acting NLRB GC will likely take a different approach to federal labor law that will impact employers. Although the GC memorandum is not binding, it provides a framework for several potential major policy changes at the NLRB. However, any changes will likely occur slowly since the board currently does not have a quorum. Therefore, while employers can take steps now to comply with the memorandum (including evaluating any existing stay-or-play provisions and non-compete agreements), they should continue to monitor for updates.