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Sunday, May 3, 2026

NLRB Update: Are Confidentiality and Non-Disparagement Clauses ... - JD Supra

Most employers have seen recent headlines about the National Labor Relations Board’s stance that employee severance agreements will be deemed unlawful if they contain confidentiality or non-disparagement provisions. This ruling covers both unionized and nonunionized businesses in the private sector. Employers should consider taking action to help insulate their severance agreements in the event of a challenge.

What Happened with Confidentiality and Non-Disparagement Clauses?

On February 21, 2023, the National Labor Relations Board (“NLRB” or “Board”) issued its decision in McLaren Macomb, 372 NLRB No. 58 (2023), a case involving early-pandemic-era layoffs and severance agreements. The Board held that simply offering an employee a severance agreement is unlawful if the agreement conditions severance payment on the forfeiture of the employee’s rights under Section 7 of the National Labor Relations Act (the “Act” or “NLRA”). Section 7 generally protects employees’ rights to self-organization, to join labor organizations, and to engage in “other concerted activities” to improve the workplace. For example, Section 7 rights typically include actions such as making public statements about the workplace, discussions about terms and conditions of employment, working with and assisting co-workers with workplace issues, and cooperating with the NLRB’s investigations and litigation. The McLaren Macomb decision makes clear that a severance agreement violates the NLRA if its terms...



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