When employers offer severance pay to a terminated employee, the employers typically require that, before receiving the pay, the employee sign a severance agreement. Severance agreements primarily are used to obtain a waiver from the employee of any legal claims the employee may have had against the employer, known as a general release. But, many employers also include non-disparagement and confidentiality clauses. Under a recent ruling from the National Labor Relations Board (NLRB), non-disparagement and confidentiality clauses are unlawful.
What are non-disparagement and confidentiality clauses and what does the NLRB’s ruling mean? Today’s Long Island employment law blog explains.
As noted, when employers often severance pay to an employee, the employee usually must also sign a severance agreement. The agreement sets forth the terms to which the employee must agree, in order to receive and keep the severance pay. Among the many provisions generally included in severance agreements is a non-disparagement provision.