National Labor Relations Board Restricts Non-Disparagement and Confidentiality Clauses in Severance Agreements

In the case of McLaren Macomb (372 N.L.R.B. No. 58), the National Labor Relations Board (NLRB) held, on February 21, 2023, that it is illegal under the National Labor Relations Act (NLRA) for employers to offer non-supervisory employees severance agreements containing broad non-disparagement and confidentiality provisions which interfere with employees’ rights under the NLRA.  The NLRB’s decision applies to all employers, both unionized and non-unionized.  Therefore, all employers should be aware of the NLRB’s rules about the use of such clauses in severance agreements.

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