Daniel Johns discusses in Law360 the National Labor Relations Board’s (NLRB) April decision in Prime Communications LP. The NLRB may soon revisit the issue of the legality of nondisparagement and confidentiality provisions in severance agreements. Although the Board declined to overturn their 2023 decision in McLaren Macomb, which found that employers’ inclusion of such provisions violated the National Labor Relations Act, several members indicated openness to overturn the decision in a future case. In the meantime, Daniel advises employers to carefully evaluate whether nondisparagement and confidentiality provisions are necessary when creating severance agreements, and if so, to draft them narrowly.
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