A May memo by General Counsel for the National Labor Relations Board (NLRB) said most non-competition agreements violate federal law and could make it easier for trade union activists to infiltrate U.S. companies. , an expert told the Daily Caller News Foundation.
General Counsel Jennifer Abruzzo, an NLRB executive appointed by President Joe Biden in 2021 to investigate and prosecute unfair labor practices cases, sent the following statement: memo Notifying regional directors, May 30, that non-competition agreements that prevent employees from competing with employers to find work are in most cases in violation of section 7 of the National Labor Relations Act, suggested that the NLRB could file a lawsuit. Regarding that matter. In particular, the governor of Abruzzo said the non-competition unfairly restricted union activity, and experts told the DCNF that employers were “salty”, i. It said it deprived employees of a vital means of preventing intrusion. . (Related: Paramount+ Drops Dozens of Shows as Writers’ Strike Intensifies)
“[Non-compete contracts] It discourages employees from job hunting, at least in part, for the purpose of engaging in protected activities with other workers at the employer’s workplace,” the memo asserts. “In this respect, employees are effectively restricted in their travel necessary to engage in certain forms of activity, such as union organizing, which includes multiple It may include obtaining a job from an employer.”
Austin BannanAn Americans for Prosperity Employment Policy Fellow told DCNF the guidance will help unions organize more effectively in the workplace.
“It’s fair to say that Abruzzo’s intention here is to prioritize trade union organizing over freedom of contract and open up new avenues for trade union activity in the workplace,” Bannan said. said.
rusty brownBrown, the Southern director of the Freedom Foundation and a former policy adviser to the Labor Department under Trump, said the non-competition agreement was intended to “restrain corporate espionage,” and that activists were doing more for the unions. argued that it was , in a statement to the DCNF.
“[Salts’] All the work is to get in there and help organize the workforce…how is that different from corporate espionage with millions of dollars in prison fines? said Mr Brown. “[Unions] Despite being apparently a large company, they are free to conduct corporate espionage or covertly send their employees to another company for the sole purpose of gaining their own profits. increase. ”
The Biden administration that appointed Mr. Abruzzo has made a number of pro-union promises before and during his presidency. In 2020, President Biden pledged on the eve of his election to be “the most pro-union president I’ve ever seen,” and acted like he did in April 2021. presidential decree Consider ways to increase membership.
Since that pledge, the Biden administration has pushed the Protecting the Right to Organize Act (PRO), which has been criticized by Republicans for forcing workers to form unions if they don’t want to join or pay union dues. It is The bill would strip workers of the right to vote against forming a union in secret ballot elections, force non-members to pay dues, and void right-to-work laws in 27 states. .
Some argue that eliminating non-competition would strengthen workers’ rights and boost economic growth.
“Across all industries and income groups, non-competition is the worst thing for workers and a major drag on economic growth,” said Democratic Connecticut Senator Chris Murphy. press release He is pushing a bill that would limit non-compete agreements that he introduced with Republican Indiana Senator Todd Young. “It is foolish to allow companies to hide behind these agreements as a means of driving down wages and deterring competition.”
“Non-competition agreements stifle wage growth, career advancement, innovation, business creation, and human freedom. Our bill will remove these barriers and help Hoosier workers, not hinder them. It’s about creating opportunities,” Young said.
Today is #Juneteentha day to celebrate liberation without losing sight of how far we must go to ensure complete freedom and equality for all.
Today and every day, you have the right to argue with your colleagues for more racially fair policies in the workplace. pic.twitter.com/BG5c2qsTxu
— NLRB General Counsel (@NLRBGC) June 19, 2023
However, some argue that non-compete agreements help companies retain their intellectual property.
David Osbornea fellow of the American Workers’ Association told DCNF that non-competition is a valuable tool for businesses.
“Abolition of anti-competition agreements would make it easier for union ‘salt’ to percolate into American business. Removing anti-competition agreements would allow companies to move more freely between companies and encourage other employees to form unions,” Osborne said. “But the more immediate effect is that by removing non-compete agreements, a perfectly acceptable tool that U.S. businesses have long used to protect valuable intellectual property, the government will allow union organizers to to blame us.”
As for how the initiative will affect workers, Osborne said, “Employers who have unionized want their employees to know that they can immediately secure jobs in their own capacity. We will have less trust in, less leniency, and we will be forced to be stricter about who has access to valuable intellectual property.” Always your closest competitor. ”
The NLRB declined to comment to the DCNF.
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