Accessibility Tools

Skip to main content

NLRB Issues First Unfair Labor Practice Complaint against Non-Competes and Training Repayment

Written on .

The General Counsel of the National Labor Relations Board (NLRB), former union lawyer Jennifer Abruzzo, continues to attempt to expand the application of the Labor Act to cover everyday employment policies.  The latest attack comes through an unfair labor practice complaint issued against a spa alleging it illegally made workers sign various contracts, including non-compete and training repayment agreements.  The complaint was filed on September 1, 2023 against Juvly Aesthetics, Case No. 09-CA-300239.  The non-compete prohibited workers from performing certain services within a 20-mile radius of any company locations for two years after leaving their jobs.  

The NLRB complaint also claims the spa violated the Labor Act through a training repayment program in which employers try to make workers repay job training if they quit.  The repayment provision would require workers to pay back certain training costs if they leave within a year of starting, and at prorated rates over the course of the second year.  The Cincinnati NLRB Office announced that "provisions like these, that in practice cut off employees' ability to leave their job, interfere with the employees' exercising of their rights under Section 7 of the National Labor Relations Act."

The NLRB judges themselves and the full Board in Washington have yet to accept the validity of these novel theories, but it is concerning to many employers that charges and complaints are being issued on these common company policies, particularly pertaining to non-competes. 

This article is part of our March 2024 Newsletter. 

View newsletter online

Download the newsletter as a PDF

Related Content

Get Email Updates

Receive newsletters and alerts directly in your email inbox. Sign up below.
sunset, signs
The Trump Administration, immigrant rights groups, and the courts are battling over who controls the legal status and employment authorizat…
digital sign face
President Trump on January 20 and 21, 2025, issued Executive Orders 14151 and 14173, seeking to eliminate federal Diversity, Equity and Inc…
large skyscraper building
In January of 2025, during the last month of the Biden Administration, the U.S. Department of Justice (DOJ) and the Federal Trade Commissio…
typewriter, cancel
During the Biden Administration, in 2021, President Biden issued an executive order establishing a $15 minimum wage for federal contractors…
old clocks
If you employ a worker with TPS status, you should pay attention to the work authorization expiration date. 
A federal district judge in San Francisco on Monday temporarily blocked the Trump administration from terminating deportation protections f…