Changes at the NLRB with the New Administration
In late January 2025, President Trump dismissed General Counsel Jennifer Abruzzo and Board Member Gwynne Wilcox from the National Labor Relations Board (NLRB), divesting the NLRB of a quorum. On February 3, 2025, President Trump appointed William B. Cowen as Acting General Counsel. On February 14, 2025, Cowen issued a memorandum wholly rescinding and rescinding pending future guidance prior to general counsel memoranda issued during previous administrations, particularly the Biden administration. While the general counsel memoranda are advisory only, they do provide guidance on the NLRB's priorities and interpretation of the National Labor Relations Act.
Among others, Cowen rescinded the following GC memoranda:
- Memorandum GC 23-05: Advocated taking action against employers who used severance agreements with broad non-disparagement and confidentiality clauses
- Memorandum GC 23-08: Advocated taking action against employers who used noncompetition agreements
- Memorandum GC 25-01: Advocated taking action against employers who imposed stay-or-pay provisions within their agreements, handbooks, or workplace policies.
- Memorandum GC 22-06: Required Regional Offices to seek "the full panoply of remedies available" when preparing settlements for unfair labor practices.
- Memorandum GC 24-04: Expanded the scope of consequential damages that Regional Offices should seek.
Cowen's memorandum evidences a significant policy shift at the NLRB. However, we anticipate this shift in prosecutorial action to occur gradually as the Regional Offices put into action the new guidance. Furthermore, the current Board lacks a quorum and is unable to change prior precedent. Thus, despite these new priorities, current labor laws remain in effect, particularly prior Board decisions issued during the prior administration.
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