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ARTICLE · 26 JULY 2023

Severance Agreements - Part Deux

In February, I wrote regarding the National Labor Relations Board's (NLRB) recent decision in McLaren McComb on this blog. That decision held that an employer violated Section 8(a)(1)...

United StatesEmployment and HR

In February, I wrote regarding the National Labor Relations Board's (NLRB) recent decision in McLaren McComb on this blog. That decision held that an employer violated Section 8(a)(1) of the National Labor Relations Act by proffering severance agreements containing overly broad non-disparagement and confidentiality clauses. That decision has caused quite a bit of consternation on the part of employers (and their lawyers) as non-disparagement and confidentiality clauses have, since time in memoriam, in almost every employee severance agreement. Late last month the NLRB's General Counsel (GC) issued memorandum GC 23-05 which sought to clarify some of the questions raised.

The GC made it clear that severance agreements are not banned and the finding of an objectionable provision will not render the entire agreement void, but we should take the NLRB at its word that it is firmly on the path of gutting non-disparagement and confidentiality clauses from severance

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