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National Labor Relations Board NLRB applies National Labor Relations Act NLRA to workplaces without union representation, lessened value of severance agreements by finding it unlawful for employer to proffer severance agreement with broad non-disparagement provisions.
National Labor Relations Board issued ruling in McLaren Macomb finding broad confidentiality and non-disparagement clauses in severance agreements violate Section 8 of National Labor Relations Act. Decision applies to employees not managers or supervisors.
National Labor Relations Board overruled 2020 Board decisions holding severance agreements containing broad confidentiality and non-disparagement provisions unlawfully restrict employee Section 7 rights to discuss terms and conditions of employment.
National Labor Relations Board issuedprecedent-shifting decision regarding severance agreements. Employer now violates Section 8 of the National Labor Relations Act when itproffers severance agreement that conditions severance benefits on waiver of employee rights.