Good news for employers: Moonlighting, noncompetes and the NLRA

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in Employment Law,Human Resources

by Frank P. Spada Jr., Esq., Pepper Hamilton LLP

The National Labor Relations Board (NLRB)’s Division of Advice recently released a memorandum that should hearten ­­employers. It concluded that requiring employees to sign an agreement that contains a noncompete clause or a “moonlighting” provision would not unlawfully interfere with an employee’s exercise of rights under Section 7 of National Labor Relations Act (NLRA).

Section 7 provides that employees are free to engage in union activity or protected concerted activity for their mutual aid and protection.

Hiring and union ‘salting’

The employer that was the subject of the memorandum, Thermal Tech, Inc., provides insulation installation services. Thermal is a nonunion employer.

The Heat and Frost Insulators and Asbestos Workers Local #7 has been attempting to organize Thermal’s employees for several years. The union filed an unfair labor practice charge alleging that the no...(register to read more)

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