Employment Agreements

The Division of Advice (the “Division”) of the National Labor Relations Board (the “NLRB”) recently released an advice memorandum examining the lawfulness of various key provisions – including non-solicitation, non-disclosure, and return of property provisions – contained in an employer’s standard employment agreement. The Division’s approach in this particular case serves as a helpful guide for how the agency will likely assess other similar agreements in the future. 

Predictability and fairness are typical pillars of employment law. Where predictability allows both employers and workers to understand and navigate the rules and regulations that are applicable to them, fairness provides a constant level of security to all parties. Recently, the Texas Supreme Court used an unpredictable procedure to reach what it calls a “rule of fairness and right.”