The National Labor Relations Board has taken a big step in deciding that non-disparagement and confidentiality clauses in employee severance agreements are illegal, a move that will require most employers to rewrite theirs.
The board ruled that these provisions stifle employees’ and ex-employees’ rights under Title 7 of the National Labor Relations Act to discuss work and their employer with one another, among other things.
Since the NLRB’s decision applies to both unionized and non-unionized workers, legal experts advise all employers to revisit their severance agreement templates. However, the decision only covers employees — and not severance agreements for supervisors or managers, who are not afforded rights under Title 7. You May Need to Rewrite Your Severance Agreements after NLRB Ruling