NLRB: No nondisparagement, confidentiality clauses in severance agreements.

The National Labor Relations Board on Feb. 21 said it's unlawful to include nondisparagement and confidentiality provisions in the severance agreements employers often ask laid-off employees 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...

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