The National Labor Relations Board (NLRB) recently issued a decision which has the potential to greatly impact the way employers approach termination contracts. The ruling stated that employers are not allowed to include in severance agreements language which prevents employees from filing complaints with the NLRB or other agencies. This has caused a stir among employers, as they now must figure out how best to navigate these new regulations and restrictions.
The NLRB’s decision has been met with a mix of reactions. On one hand, some employers are concerned that they will no longer be able to include language in termination contracts which prevents employees from filing complaints with the NLRB or other agencies. On the other hand, some employers see this as an opportunity to protect their interests. As Klein noted in a statement, including such a restriction in a termination contract would at least provide employers with something.
However, the decision is subject to appeal and could be reversed at some point by an appeals court, as Fox Rothschild attorneys have commented. Therefore, employers should take this into account when deciding whether or not to include restrictive language in their severance contracts. Additionally, Andrew Herman of Blank Rome employment law said that the NLRB suggested that an agreement waiving rights to pursue claims dated to the day of the severance contract may be acceptable. In other words, employees may still waive their right to file a complaint in exchange for certain benefits or payments but only if the waiver is dated to the day of the severance contract.
When preparing and presenting severance packages, employers should take into account the full implications of this recent ruling and ensure that any restrictive language is dated to the day of the agreement in order to be considered valid by the NLRB. Additionally, they should specify in a severance agreement that it does not impede employees from helping colleagues or former colleagues with matters related to their job or communicating with outside parties, such as unions and the NLRB. Doing so will ensure that employees do not feel restricted in any way and can still pursue complaints against their employer if necessary.
Overall, the NLRB’s decision has caused a stir among employers who are now trying to figure out how best to navigate their way through these new restrictions and regulations. It is important for employers to understand the full implications of this ruling when preparing and presenting severance packages and ensure that any restrictive language is dated to the day of the agreement in order to be considered valid by the NLRB. Additionally, they should specify in a severance agreement that it does not impede employees from helping colleagues or former colleagues with matters related to their job or communicating with outside parties, such as unions and the NLRB. Doing so will provide employers with protection while also allowing employees to pursue complaints against their employer if necessary.