Zip It: Severance Agreement Confidentiality Provisions Upheld

Many companies tender severance agreements to employees when they are separated from employment under various circumstances. These agreements routinely contain releases of claims that seek to resolve most potential claims a former worker may have against an organization. Severance agreements also typically include confidentiality provisions that preclude an employee from disclosing the financial terms of the agreement. While the National Labor Relations Board (NLRB) previously held such clauses to be unlawful at times, a recent advice memo from the agency indicates the Board now permits them.