loader
Page is loading...
generic_insight_detail

Trump’s NLRB Signals It Will Revisit Board’s Stance On ‘Confidential Severance Agreements’


On Dec. 27, 2017, the National Labor Relations Board (NLRB) issued an order in which President Trump’s two appointed members – Marvin Kaplan and William Emanuel – stated that they want to revisit the board’s stance on confidentiality provisions contained in severance agreements (i.e., provisions that prohibit disclosures related to the terms and sometimes even the existence of the agreement). The two members specifically noted in the order that “they believe that, to the extent not already permitted under Board precedent, the legality of confidential severance agreements for former employee should be reconsidered.” In recent years, the NLRB has taken a hard-line view against “confidentiality” obligations imposed by employers on employees in various contexts and often has invalidated such clauses under the theory that they chill employees’ Section 7 rights to discuss terms and conditions of employment. It was very rare to see the NLRB uphold such policies in any context unless they were very narrowly tailored. The comments in the Dec. 27 order by the newest NLRB members signals a shift is underway and the board may become more tolerant of company-imposed restrictions. In fact, the NLRB announced a more lax rule for evaluating employer personnel policies generally on Dec. 14, 2017, which likely will be more favorable to companies seeking to enforce or implement various workplace rules. A ruling on confidentiality clauses in severance agreements may be coming later this year based on the Dec. 27 order. Stay tuned.


LEAVE YOUR COMMENT

RELATED ARTICLES

Cough it Up! Company Forced to Give Union Complete Copy Of Third-Party Agreement

June 11, 2019 | Labor Relations, National Labor Relations Board

Thin Skin? Discharge of Employee for Criticizing Executive’s Salary Was Unlawful

May 31, 2019 | Labor Relations, National Labor Relations Board

Changes Coming: NLRB Considers Rulemaking on Ambush Elections and More

May 24, 2019 | Labor Relations, National Labor Relations Board

Are Uber Drivers Employees?

May 15, 2019 | Labor Relations, National Labor Relations Board

Subscribe

Do you want to receive more valuable insights directly in your inbox? Visit our subscription center and let us know what you're interested in learning more about.

View Subscription Center
Trending Connect
We use cookies on this site to enhance your user experience. By clicking any link on this page you are giving your consent for us to use cookies.