The NLRB Finds Unlawful Confidentiality and Non-Disparagement Provisions in Severance Agreements: Non-Disparagement, Non-Disclosure, Non-Allowed
On February 21, 2023, the National Labor Relations Board (“NLRB” or “Board”) continued its aggressive application of the National Labor Relations Act (“Act” or “NLRA”) to workplaces without union representation and lessened the value of severance agreements for all employers by finding it unlawful for an employer to merely proffer a severance agreement that includes broad non-disparagement and confidentiality provisions to an employee. in Mclaren Macomb, the Board held that a severance agreement that contained a confidentiality clause and a non-disparagement clause was unlawful because, in the Board’s view, these provisions impermissibly infringe on employees’ rights under the Act. …
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