On February 14, 2025, the Acting General Counsel of the National Labor Relations Board (NLRB) William Cowen announced the rescission or reconsideration of numerous general counsel memoranda issued by his predecessor Jennifer Abruzzo, including two memoranda questioning the legality of non-compete agreements.
In his memo, Cowen attributed the rescission to an unsustainable backlog of cases at the NLRB:
“Over the past few years, our dedicated and talented staff have worked diligently to process an ever-increasing workload. Notwithstanding these efforts, we have seen our backlog of cases grow to the point where it is no longer sustainable.
“The unfortunate truth is that if we attempt to accomplish everything, we risk accomplishing nothing.”
Fourteen Abruzzo-era memoranda were fully rescinded, including:
- GC 23-08 "Non-Compete Agreements that Violate the National Labor Relations Act" issued on May 30, 2023; and
- GC 25-01 "Remedying the Harmful Effects of Non-Compete and 'Stay-or-Pay' Provisions that Violate the National Labor Relations Act" issued on October 7, 2024.
NLRB general counsel memoranda are not regulations, but act as guidance to the regional offices investigating and prosecuting charges against employers.
In addition to the 14 memoranda fully rescinded, 11 other general counsel memoranda have been rescinded pending further review and guidance. The Acting General Counsel notes that further adjustments may be made as needed to improve service to the public.
