The National Labor Relations Board on Feb. 21 said it’s unlawful to include non-disparagement and confidentiality provisions in the severance agreements employers often ask laid-off employer to sign.
The case, McLaren Macomb, involved workers who were furloughed in 2020. Their employer demanded that they sign separation agreements in which they promised not to sue, not to disparage the company and not to divulge the terms of the agreements.
The NLRB ruled that those agreements violated Section 7 of the National Labor Relations Act, which, among other things, guarantees all workers the right to discuss the terms and conditions of their employment.
“A severance agreement is unlawful if it precludes an employee from assisting co-workers with workplace issues concerning their employer, and from communicating with others, including a union and the Board, about his employment,” the NLRB wrote in its decision.
“It’s long been understood by the Board and the courts that employers cannot ask individuals employees to choose between receiving benefits and exercising their rights under the National Labor Relations Act,” said NLRB Chair Lauren McFerran.
Online resource Read the NLRB’s decision at www.nlrb.gov/case/07-CA-263041.
Source: HR Specialist Employment Law | April 2023