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On February 21, the National Labor Relations Board decided (here) that nondisparagement and confidentiality provisions in a severance agreement that businesses give to employees are unlawful.
The case involved a situation not unlike many your business may have encountered before. In 2020, COVID-19 restrictions caused the employer to furlough 11 employees because they were deemed nonessential. The company presented each employee with a “Severance Agreement, Waiver and Release” that offered to pay differing severance amounts to each furloughed employee if they signed the agreement. All 11 employees signed the agreement.
Among other things, the
