Case Study: Recent NLRB Ruling Places New Restrictions On Severance Agreements

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Over the years, the NLRB has taken various positions regarding what activities might “chill” an employee’s right to organize, with some directors being very narrow in their interpretation and others extremely expansive.

In evaluating whether language and severance agreements “chilled” these rights in 2020, the Board looked at both the plain language of the agreement and added specific conditions that result in invalidating a severance agreement. This included some form of legal violation, such as unlawful termination, as well as demonstrating anti-union animus by the employer.

The Board has now reversed these 2020 additions with its recent ruling

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