Acting General Counsel Rescinds Long List of Biden-Era Guidance
The new Trump era has truly begun.
On Friday, Acting GC William Cowen issued the first General Counsel memorandum (“GC memo”) of the Trump administration, GC 25-05. These GC memos serve a variety of purposes, including describing technical changes, providing guidance and clarification about recent NLRB decisions, and laying out the policy initiatives and litigation strategies of the current GC.
Whenever a new GC is installed, especially one from the opposite party, they typically begin their reign by rescinding a list of GC memos issued by their predecessor. Acting GC Peter Sung did that in February of 2021 with GC 21-02. Now, Acting GC Cowen is doing the same thing with GC 25-05.
In total, GC 25-05 rescinds 30 prior GC memos. Cowen does not provide much elaboration about why any given memo is being rescinded, but we can read between the lines a bit to make some reasonable assumptions about what certain rescissions indicate about what is coming at the agency.
No to college athlete unions. The memo rescinds GC 21-08, which took the position that student-athletes at private universities are generally employees covered by the National Labor Relations Act. In Northwestern University (2015), the Board declined to assert jurisdiction over Northwestern for the purposes of certifying a union of their football players. But this was a discretionary decision not to assert jurisdiction. The Board declined to rule that the players were not employees. Thus, the Board left open the question of whether college athletes are covered by the other protections provided by the NLRA even if the agency opts not to certify their unions. Jennifer Abruzzo, the GC under Biden, said yes. By rescinding GC 21-08, the new GC is indicating that his answer is no. This also indicates that the new GC is not likely to certify any college athlete unions contrary to the prior GC who did attempt to certify a union of Dartmouth college basketball players. The union representing the Dartmouth players has since withdrawn that case in order to avoid having the case heard by the incoming Trump Board.
No to prosecuting non-compete agreements, stay-or-pay rules, training repayment assistance provisions, and other clauses that limit worker mobility. The memo rescinds GC 23-08 and GC 25-01, which took the position that contractual structures where workers are hugely penalized if they quit their job, e.g., by making them pay money to their employer or by preventing them from getting another job, are unfair labor practices because they either directly or indirectly prevent workers from engaging in certain protected activity. GC Abruzzo litigated a couple dozen cases concerning these provisions, but all of them settled before the Board could issue a decision establishing that the provisions do violate the NLRA. By rescinding these memos, the new GC is indicating that he will not take this position and thus that employers can use these kinds of provisions without risking an NLRB enforcement action against them.
Overturning restrictions on including confidentiality and non-disparagement provisions in severance agreements. In McLaren Macomb (2023), the Board overruled IGT (2020) and Baylor (2020) and established that employers may not insert broad confidentiality and non-disparagement provisions into severance agreements with their employees. The reasoning was that former employees have a right to discuss and publicize their working conditions and that these clauses coerce them from exercising those rights. By rescinding GC 23-05, the new GC is likely indicating that he disagrees with the McLaren Macomb decision and will seek to bring a case to the Board to have it overturned. The way this will work is that the new GC will bring cases against these kinds of severance agreements alleging that they are illegal while also providing an “alternative analysis” in his briefing that urges that the Board overturn McLaren Macomb and establish that these agreements are not illegal.
Overturning make-whole remedies for victims of unfair labor practices. In Thryv (2022), the Board expanded its monetary remedies for victims of unfair labor practices to include “all direct or foreseeable pecuniary harms” suffered as a result of the unfair labor practice. As a result of this decision, the NLRB was able to secure a variety of remedies for illegally fired workers that it had never pursued before including things like bank overdraft fees, utility disconnection fees, relocation and moving expenses, and legal representation costs in an eviction proceeding. By rescinding GC 21-06, GC 22-06 and GC 24-04, the new GC is likely indicating that he disagrees with the Thryv decision and will seek to bring a case to the Board to have it overturned.
Overturning lower standard for bargaining orders. In Cemex (2023), the Board established a new standard that made it easier for unions to establish that an employer’s unfair labor practices during a union election so tainted the outcome that the Board should require the employer to bargain with the union despite the results of the election. By rescinding GC 24-01, the new GC is likely indicating that he disagrees with the Cemex decision and will seek to bring a case to the Board to have it overturned.
Overturning the prohibition on captive-audience meetings. In Amazon.com Services (2024), the Board ruled that it is an unfair labor practice for employers to require employees to attend mandatory antiunion meetings. By rescinding GC 22-04, the new GC is likely indicating that he disagrees with Amazon.com Services and will seek to bring a case to the Board to have it overturned.
Once a permanent General Counsel is installed at the agency, that GC will likely issue another GC memo containing a list of mandatory submissions to the division of advice, which will provide more concrete indicators about what the agency’s policy agenda will be during the next four years.
This is the sixth entry in my Timeline of Notable NLRB Events During Trump's Second Term.