As discussed in our recent Alert (NLRB Finds Confidentiality and Non-Disparagement Clauses in Severance Agreement Unlawful – Davis+Gilbert LLP), the National Labor Relations Board ruled in February 2023 that a severance agreement with confidentiality and non-disparagement provisions was unlawful because it restricted the rights of employees to engage in protected concerted activity under Section 7 of the National Labor Relations Act.

Following this decision, last week the NLRB’s General Counsel issued a Memorandum to Regional Directors with guidance in response to inquiries about the McLaren Macomb decision.  The Memorandum reflects how the General Counsel believes the decision should be interpreted and enforced by the NLRB.

Employers that offer severance agreements to departing employees should consult with counsel to better understand the potential impact of the General Counsel’s Memorandum on these types of agreements.

Check out the GC’s memorandum here: NLRB General Counsel Issues Memo with Guidance to Regions on Severance Agreements | National Labor Relations Board