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NLRB Ruling on Severance Agreements

The National Labor Relations Board (NLRB) recently ruled that employers may not offer employees severance agreements that contain broad confidentiality and non-disparagement provisions. In McLaren Macomb, the NLRB ruled that an employer violates the National Labor Relations Act (NLRA) when it offers employees a severance agreement with these provisions that can potentially restrict employees of their NLRA rights.

With this ruling, employers should review their severance agreement documents and practices with legal counsel to ensure any confidentiality and related provisions are properly tailored in accordance with this ruling.

To read the full decision, please click here.

For questions about severance agreements or other matters, reach out to our experienced Labor & Employment Department at 408.286.5800 or e-mail