HSB Blog

NLRB Rules Nondisclosure and Nondisparage Provisions Unlawful in Severance Agreements

March 02, 2023

The National Labor Relations Board (NLRB) recently ruled that nondisclosure and nondisparage provisions in severance agreements violate Section 7 of the National Labor Relations Act (NLRA). The NLRB noted provisions requiring an employee to keep the terms or existence of a severance agreement confidential or prohibiting disparagement of the employer, its affiliates, officers, managers or employees are unlawful because those provisions restrict an employee’s right to engage in concerted activity.