Employers can’t silence laid-off staff in exchange for severance anymore

Should you be laid off from your company, severance pay may be offered by your employer, yet a set of restrictions must be accepted, one of which could include a clause of silence. But the National Labor Relations Board recently announced that employers may not legally silence their dismissed employees in two distinct ways.

What’s going on:

If you are laid off from your company, your employer may offer severance pay — but you must agree to a set of restrictions, one of which could be an obligation of silence.

However, the National Labor Relations Board recently notified employers that they cannot legally silence laid-off employees in two distinct ways, as that would be in violation of sections 7 and 8(a)(1) of the National Labor Relations Act.

Why it matters:

No longer can employers include a broadly worded confidentiality clause that mandates employees keep quiet on the specifics of severance agreements, and they can no longer use a broadly phrased non-disparagement clause that stops employees from speaking to third parties about their work conditions.

Even if appealed, this week’s ruling from the labor board is currently in effect.

How it’ll impact the future:

Employers will now need to thoroughly scrutinize and update their severance deals to prevent the use of overly expansive phrasing that would compromise their employees’ rights, per the board ruling.