NLRB Rules Severance Agreements with Nondisclosure Clauses are Unlawful

The National Labor Relations Board (NLRB) recently ruled in a case regarding severance agreements. In the case, McLaren v. Macomb, management at a hospital offered severance agreements to furloughed employees that included a clause prohibiting them from speaking negatively about their employer and disclosing the agreement's terms.

The NLRB ruled this was unlawful, and that the ruling also applies retroactively. This means employers may be forced to leave non-disclosure clauses out of future severance agreements and reverse agreements they previously offered.

On this episode, Tom discusses why employers should be cautious when drafting severance agreements to avoid violating the provisions in the NLRA and how this could lead to more changes in the future for the NLRB.