February 24, 2023
No items found.

NLRB Issues Ruling on Unlawful Severance Agreements

This week, the National Labor Relations Board issued a ruling stipulating that employers cannot make employee severance packages contingent on workers giving up NLRA-enacted rights. Specifically, that employers cannot prevent terminated employees from disparaging the employer or keeping the contents and existence of their severance agreement confidential.

In this most recent decision the board ruled that offering severance based on giving up labor rights was in and of itself an effort by employers to steer workers away from their statutory rights.  

According to board chairman Lauren McFerran, “It’s long been understood by the Board and the courts that employers cannot ask individual employees to choose between receiving benefits and exercising their rights under the National Labor Relations Act. Today’s decision upholds this important principle and restores longstanding precedent,”

The NLRB’s ruling is part of a larger strategy by the Biden administration to shore up workers’ rights. As of now, the common provisions of non-disparagement and confidentiality in severance agreements are not permissible under this ruling, however, it is expected to be appealed. The ruling also references potential carve-outs, which will be explored in the coming months. We will be monitoring this ruling closely as it has broad ramifications for our employer and employee clients signing or offering severance agreements.

white line

Meet Berke-Weiss Law's 2025 Summer Law Clerks

June 17, 2025
No items found.
2025 Summer Law Clerks have started their summer intership with the Berke-Weiss Law team!

The Supreme Court Opinion in Ames v. Ohio Department of Youth Services and its Impact on Title VII Discrimination Suits

June 10, 2025
Gender Discrimination
Race Discrimination
A recent Supreme Court decision could have an impact on future Title VII Discrimination Suits.

Berke-Weiss Law Says Goodbye to Their Wonderful 2024-2025 Student Law Clerk!

April 24, 2025
No items found.
The Firm wishes Eileen Farrell well in her future endeavors and thanks her for all her hard work at the Firm.

Get In Touch

Knowing where to turn in legal matters can make a big difference. Contact our employment lawyers to determine if we can help you.