NLRB Invalidates Severance Agreements with Nondisclosure Clauses.

The National Labor Relations Board (NLRB) has reiterated its stance that severance agreements with nondisclosure clauses that require employees to waive certain National Labor Relations Act rights are illegal, and this interpretation applies retroactively. The NLRB's decision in the McLaren Macomb case reversed its 2020 decisions in the Baylor University Medical Center and IGT d/b/a International Game Technology cases. Employers are advised to review their severance agreements and inform current or former employees with such agreements that they are null and void. The NLRB has also stated that the employer's offer itself is a move to bar workers from exercising their rights.