1. Federal issue: Confidentiality and non-disparagement
In the National Labor Relations Board’s (NLRB) February 21, 2023, ruling in McLaren Macomb, the Board reversed prior NLRB rulings and made it more difficult for an employer to include two types of provisions commonly found in severance agreements for non-supervisory employees. The first type are those that require the employee to keep the severance agreement and its terms confidential. The second is those that require non-disparagement.
Employers have responded to this ruling by either eliminating these provisions altogether, or adding a line to state that “nothing in this agreement does or is intended to violate an Employee’s rights under the National Labor Relations Act.” Whether or not such a disclaimer is sufficient has not yet been determined.
Q. Does this decision impact how an employer can protect itself from an ex-employee (non-supervisory) sharing its confidential or proprietary information and trade secrets with a competitor?
A: No. The NLRB decision only covers whether employers can restrict an employee from sharing the fact that an agreement has been entered into, or that claims have been released in exchange for compensation. This is because...
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