John Stewart
Fri, 04/21/2023
In the wake of the February 21, 2023 decision (McLaren Macomb and Local 40 RN Staff Council, OPEIU) from the National Labor Relations Board (“NLRB”) prohibiting severance agreements conditioned on non-disparagement or confidentiality provisions, employers have begun adjusting their practices to avoid unfair labor practice charges under the National Labor Relations Act (“NLRA”). The NLRB’s ruling restored the pre-2020 rule on non-disparagement and confidentiality agreements, reasoning that employers violate Section 8(a)(1) of the act when they offer such severance agreements, by restricting the employee’s exercise of NLRA rights.
The former chair of the NLRB, John Ring, recently commented to Law360 that some employers have made the decision simply to remove confidentiality provisions or nondisparagement provisions from severance agreements, which he called “the most risk-averse approach.” Other employers, Mr. Ring noted, could be taking the risk of including confidentiality or non-disparagement provisions in their severance agreements, despite the fact that they may face unfair labor practice charges if the affected employees knew of the recent NLRB ruling.
If you have questions about employment rights, including but not limited to rights concerning severance agreements, or believe you have been denied any protected employment benefits, please reach out to MSE at info@mselaborlaw.com.
