Companies can’t silence laid-off employees in exchange for severance, Labor Board rules

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The National Labor Relations Board issued the ruling this week, which said employees cannot be prevented from making disparaging remarks about their former employer in exchange for severance.

— a federal law that grants employees the right to form or join unions, engage in protected, concerted activities to address or improve working conditions, and/or refrain from engaging in these activities.

"It’s long been understood by the Board and the courts that employers cannot ask individual employees to choose between receiving benefits and exercising their rights under the National Labor Relations Act," NLRB Chairman Lauren McFerran said in a statement. "Today’s decision upholds this important principle and restores longstanding precedent.

 

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Companies can't enforce silence for severance pay, Labor Board rulesCompanies can no longer offer severance agreements that prevent employees from making disparaging remarks about their former employer, the National Labor Relations Board ruled Tuesday. Not sure how well this plays to employees since they usually involve a financial payout which speaking negatively about the company does not. Many employees would prob prefer the cash. While I agree with this on one one level this takes away a major incentive to offer a severance package at all. Not sure that is the desired outcome. HungLee This is huge
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