Summary At a Glance
- The NLRB has reaffirmed that overly broad confidentiality and non-disparagement provisions in severance agreements may violate employees’ Section 7 rights, even if the agreement is not signed.
- This standard remains currently in effect, reinforcing the precedent set in McLaren Macomb and applied in subsequent decisions.
- Employers face ongoing risk if separation agreements restrict employees’ ability to discuss working conditions or engage in protected activity.
The National Labor Relations Board (NLRB) recently declined to overturn the McLaren Macomb precedent, confirming in its decision in Prime Communications, LP that severance agreements with overly broad language remain a violation of federal labor law. This decision reinforces that employers must ensure separation terms do not interfere with workers’ rights to organize or discuss working conditions.
For background, the National Labor Relations Board’s decision in McLaren Macomb clarified that overly broad confidentiality or non-disparagement provisions in severance agreements may violate the NLRA by restricting employees’ Section 7 rights, even if the agreement is never signed.
Recommended Next Steps for Employers
Employers should review all current severance and separation templates to ensure that any confidentiality or non-disparagement clauses are not drafted so broadly that they could be considered restrictive of employee rights.
How HR Works Can Help
How HR Works Can Help
Managing the complexities of labor law requires precision and consistent policy updates. Our team can assist your organization by:
- Assisting in pointing out restrictive language in your separation templates that may raise concerns under current NLRB standards.
- Ensuring your internal policies are aligned with the latest federal requirements to support organizational compliance.
- Offering updates on board decisions and helping you evaluate how shifts in the legal landscape might impact your HR practices.
- Providing access to updated guidance and best practices to help your team stay ahead of regulatory changes.
Current Virtual Helpline or Strategic Services clients can contact the Virtual Helpline or their designated HR Consultant for compliance support. Not an HR Works client? Contact us today to learn more about how we can support your organization.
