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swp-items-stretch"> <input type="search" class="swp-input--search swp-input" placeholder="" value="" name="s" title="" /> </div> <input type="submit" class="search-submit swp-button" value="Search"/> </div> </div> </form> </div> </div> </div> </div> </div> </header> <main class="main main--blog" role="main" tabindex="-1"> <section class="hero single"> <div class="hero__overlay" tabindex="-1"></div> <div class="hero__container columns"> <div class="hero__container-left"> <div class="hero__content"> <h1 class="hero__title">Employees have more good news to celebrate in the rollback of non-compete clauses.</h1> </div> </div> </div> </section> <section id="content-skip" class="content-template"> <div class="content-template__container"> <article class="content-template__body"> <span class="post-date">June 8, 2023</span> <div class="wysiwyg"><p>By <a href="https://browngold.com/people/greg-care/">Greg Care</a></p> <p><img fetchpriority="high" decoding="async" class="size-medium wp-image-5867 alignright" src="https://browngold.com/wp-content/uploads/2022/09/care-greg-3-300x199.webp" alt="Gregory Care" width="300" height="199" srcset="https://browngold.com/wp-content/uploads/2022/09/care-greg-3-300x199.webp 300w, https://browngold.com/wp-content/uploads/2022/09/care-greg-3-545x360.webp 545w, https://browngold.com/wp-content/uploads/2022/09/care-greg-3-140x93.webp 140w, https://browngold.com/wp-content/uploads/2022/09/care-greg-3-181x120.webp 181w, https://browngold.com/wp-content/uploads/2022/09/care-greg-3.webp 664w" sizes="(max-width: 300px) 100vw, 300px" />This has been a year of good news for employees when it comes to limiting or eliminating the professional and financial challenges that non-compete clauses can impose when considering a job change.</p> <p>Earlier in the year, <a href="https://browngold.com/blog/non-competes-ban-doctors/">I wrote</a> about an exciting development whereby the U.S. Federal Trade Commission proposed regulations that, if finalized and survive the predicted legal challenges, would ban nearly all non-competes across the country. On the heels of that, the U.S. National Labor Relations Board’s General Counsel, Jennifer A. Abruzzo, signaled that she believed non-compete clauses may interfere with employees’ rights under the federal National Labor Relations Act (NLRA), which <a href="https://browngold.com/blog/non-disparagement-in-employment-post-mclaren-macomb/">I posted about here</a>.</p> <p>Just days ago, Ms. Abruzzo issued a legal memorandum following through on her prior indication that non-compete clauses would be on shaky legal ground. In her <a href="https://apps.nlrb.gov/link/document.aspx/09031d4583a87168">May 30, 2023 memo</a>, Ms. Abruzzo opined that “[e]xcept in limited circumstances, I believe the proffer, maintenance, and enforcement of [non-compete] agreements violate Section 8(a)(1) of the [NLRA].” While the memo does not carry the force of law (i.e., it is not binding on a court), it is an important step forward in rolling back non-competition restrictions that impose unnecessary harm on many workers across the country. At the very least, it will inform how regional offices within the agency will handle complaints about non-competes, which may lead to a Board decision that does have more legal weight. It could also serve as a tool for employees to now push back on non-competes that are adversely affecting them.</p> <p>As I discussed in a previous post, because the NLRA applies to even non-union employees, the General Counsel’s opinion memo applies to a great many U.S. workers: essentially, all private-sector employees who are not independent contractors, agricultural workers, or supervisors. The legal question of whether one qualifies as a “supervisor” is not always an intuitive or easy question to answer and must be analyzed on a case-by-case basis. There is also a caveat in the memo that non-competes would likely be permissible under the NLRA if they restrict only an individual’s managerial role or ownership interest in a competing business, or if the provisions are narrowly tailored and “special circumstances” apply. Suffice to say, though, that the scope of workers affected by this memo is expansive.</p> <p>On a related note here in Maryland, the General Assembly passed and Governor Wes Moore signed a bill (SB 591, now <a href="https://mgaleg.maryland.gov/2023RS/chapters_noln/Ch_266_sb0591T.pdf">Chapter 266</a>) that amended the Maryland Noncompete and Conflict of Interest Clauses Act to expand the scope of workers who cannot be subjected to a non-compete agreement. Whereas the law previously outlawed non-competes for workers who earn an amount equal to or less than $31,200 annually or $15.00 per hour, the law now bans non-competes for workers who earn up to 150% of the state minimum wage. Because of another legislative change this past session, the minimum wage in Maryland will be $15.00 per hour starting on January 1, 2024. So, from 2024 onward, Maryland workers making $22.50 per hour ($46,800 annually) will be covered by the ban on non-competes.</p> <p>Navigating these hurdles requires knowledge and experience. If you have questions regarding non-competes, please contact me at <a href="mailto:gpc@browngold.com">gpc@browngold.com</a> or 410-962-1030 x1316 to assist with reviewing your particular circumstances.</p> </div> <div class="authored-by"> <header class="authored-by__header"> <h1 class="authored-by__heading">Authored by</h1> </header> <div class="authored-by__list"> <div class="authored-by__list-item"> <img src="https://browngold.com/wp-content/uploads/2020/07/Care_Greg-silhouette-240x240.jpg" alt="http://Greg%20Care" class="authored-by__photograph" height="120" width="120" /> <div class="authored-by__content"> <span class="full-name">Gregory Care</span> <span class="job-title">Partner</span> <a class="linkedin ico-social-linkedin" href="https://www.linkedin.com/in/greg-care-6b294542/" title="Greg Care LinkedIn page" target="_blank" rel="noopener noreferrer"></a> </div> </div> </div> </div> </article> <aside class="content-template__sidebar sidebar" role="complementary"> <nav class="sidebar__section" aria-labelledby="side-related-attorneys"> <p id="side-related-attorneys" class="sidebar__heading">Related Attorneys</p> <ul class="sidebar__list"> <li class="sidebar__list-item"> <a href="https://browngold.com/people/greg-care/" class="sidebar__anchor" title="Greg Care">Greg Care</a> </li> </ul> </nav> <nav class="sidebar__section" aria-labelledby="side-related-practices"> <p id="side-related-practices" class="sidebar__heading">Related Practice Areas</p> <ul class="sidebar__list"> <li class="page_item page-item-73 page_item_has_children sidebar__list-item"><a href="https://browngold.com/practice-areas/employment/" class="sidebar__anchor">Employment</a><ul class='children'><li class="page_item page-item-79 sidebar__list-item"><a href="https://browngold.com/practice-areas/employment/defense-of-professional-licenses/" class="sidebar__anchor">Defense of Professional Licenses</a></li></ul></li> </ul> </nav> </aside> </div> </section> </main> <footer class="footer" role="contentinfo"> <div class="footer__container"> <div class="footer__row top"> <div class="footer__column links" style="display: none;"></div> <div class="footer__column locations"> <ul class="locations__list"> <li class="locations__list-item"> <address class="locations__location"> <strong class="title">Baltimore Office</strong> <span class="address">120 East Baltimore Street, Suite 2500<br /> Baltimore, MD 21202</span> <a href="tel:4109621030" class="tel-number" title="Call phone number"> (410) 962-1030 </a> </address> </li> <li class="locations__list-item"> <address class="locations__location"> <strong class="title">Washington, D.C. 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