A recent decision by the National Labor Relations Board (NLRB) in McLaren Macomb has both union and non-union employers taking a second look at their severance agreements. In McLaren Macomb, the Board decided that an employer violated the National Labor Relations Act (NLRA) by offering furloughed employees severance agreements that contained confidentiality and non-disparagement provisions.
What Happened in McLaren Macomb
The employer operates a hospital with over 2,000 employees. In March 2020, the government issued COVID-19 regulations that limited the employer’s operations. As a result of these restrictions, the employer terminated its outpatient services and eventually permanently furloughed 11 employees who happened to be represented by a union.
