The National Labor Relations Act (NLRA) is a federal law that applies to both unionized and nonunionized workplaces. The government agency responsible for enforcing the NLRA is the National Labor Relations Board (NLRB or the Board). 

 

On February 21, 2023, the National Labor Relations Board (“NLRB”) issued a decision turning the issue of severance agreements with employees on its head. 

The McLaren Macomb decision held that employers violate the NLRA when they offer employees severance agreements that require employees to broadly waive their rights under the Act. By doing so, the NLRB overturned decades of prior precedent to hold that non-disparagement and confidentiality provisions commonly used in severance agreements are broadly unlawful when imposed on employees (as opposed to managers or supervisors.

This decision has caused a major shake-up amongst employment attorneys. Realizing the ripple effects of the decision, on March 22, 2023, the NLRB issued detailed guidance for employers. In this article, you will find the takeaways that employers should be aware of.

 

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