Pictured: Business person points to indicate where to sign document/BernardaSv/iStock
On March 22, the National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued a memo to all field offices clarifying the details of the Board’s recent ruling 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.
On Feb. 21, the NLRB ruled this was unlawful, and Abruzzo stated in the memo 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.
According to a press release issued by the agency at the time of the ruling, any severance agreement that requires employees to “broadly give up their rights under Section 7 of the [National Labor Relations] Act violates Section 8(a)(1) of the Act.”
Section 7 of the Act guarantees employees the following rights:
The section also gives employees the right “to refrain from any or all such activities.”
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