On February 14, 2025, Acting General Counsel of the National Labor Relations Board (NLRB) William B. Cowen issued Memorandum GC 25-05, outright rescinding 15 policy memoranda established by his predecessor, Jennifer Abruzzo. In addition, the new memo rescinded 13 other memoranda pending further guidance and three more as no longer relevant or restoring guidance that existed prior to Abruzzo’s term as General Counsel. The decisive action signals a significant shift in the NLRB’s policy direction under the current administration.
Cowen cited an unsustainable backlog of cases as the primary motivation for GC 25-05, emphasizing the need for a more focused approach to the Board’s workload.
“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,” Cowen said in a statement.
Some of the rescinded memoranda of interest to Employers Council members include the following:
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Non-Compete Agreements: Under GC 23-08, former General Counsel Abruzzo stated that the “proffer, maintenance, and enforcement” of non-compete agreements in employment contracts and severance agreements violated the National Labor Relations Act (NLRA). Under Cowen’s GC 25-05, the presumption that non-competes violate the NLRA is removed; however, some states and federal agencies continue to target such agreements.
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Remedies and Settlement: GC 21-06, GC 21-07, and GC 22-06 encouraged the NLRB’s regional directors to pursue monetary penalties in settlement agreements with employers found by the NLRB to have committed unfair labor practices. The rescission of these three memoranda may signal a return by the NLRB to more traditional remedies, such as back pay and reinstatement, a welcome turn of events for employers.
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Mandatory Submissions to Advice: GC 21-04, released in August 2021, required NLRB regional offices to submit specific types of cases to the Division of Advice. This was widely seen as the first step toward overturning existing legal standards that favored employers.
Regardless of one’s political outlook, from an employer’s perspective, this is the most positive news to come out of the NLRB for some time. Employers Council will monitor forthcoming guidance from the Acting General Counsel’s office that will inform how these changes will impact labor relations and practices. Contact us if you have any questions.
Curtis Graves is an attorney for Employers Council.