Posts tagged Labor
NLRB Withdraws Appeal Challenging the Decision to Vacate the Joint Employer Rule

On October 27, 2023, the National Labor Relations Board (“NLRB”) published a Final Rule (“New Rule”) concerning the joint-employer standard. The New Rule was delayed more than once due to legal challenges and on March 8, 2024, a federal court in Texas vacated the New Rule. On May 7, 2024, the NLRB filed an appeal to the Fifth Circuit seeking to reverse the Texas court’s decision. However, on July 19, 2024, the NLRB voluntarily dismissed this appeal.

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Caroline SecolaNlrb, Labor
National Labor Relations Board Finalizes Joint-Employer Rule & Postpones Effective Date to February 26, 2024

As employers may recall, on September 6, 2022, the National Labor Relations Board (“NLRB” or “Board”) released a Notice of Proposed Rulemaking concerning the joint-employer standard under the National Labor Relations Act (“NLRA”). On October 27, 2023, the NLRB published the long awaited Final Rule concerning the joint-employer standard, which will take effect on February 26, 2024.

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Caroline SecolaNlrb, Labor
NLRB’s General Counsel Issues Guidance Concerning McLaren Macomb

Employers may recall that the National Labor Relations Board (“NLRB” or the “Board”) recently issued a decision restricting the ability of employers to include broad non-disparagement and confidentiality clauses in severance agreements if such clauses have a reasonable tendency to interfere with, restrain, or coerce employees in the exercise of their rights under Section 7 of the National Labor Relations Act (“NLRA” or the “Act”).  Late last month, NLRB General Counsel (“GC”) Jennifer Abruzzo issued Memorandum GC 23-05 (the “Memorandum”), detailing how her office is approaching common questions related to the decision.

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NLRB Ruling Impacts Confidentiality and Non-disparagement Clauses in Severance Agreements

On February 21, 2023, the National Labor Relations Board (“NLRB” or the “Board”) issued a decision in McLaren Macomb restricting the ability of employers to include broad non-disparagement and confidentiality clauses in severance agreements if such clauses have a reasonable tendency to interfere with, restrain, or coerce employees in the exercise of their rights under Section 7 of the National Labor Relations Act (“NLRA” or the “Act”). Section 7 of the Act provides non-managerial employees the right to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection, such as by discussing the terms and conditions of employment with others. Not only did the Board find the broad confidentiality and non-disparagement clauses unlawful due to their infringement on Section 7 rights, but it also held that simply offering an employee a severance agreement with this overbroad language was unlawful, even if the employee does not sign the agreement. And while the employees in McLaren Macomb were unionized, employers are reminded that all non-managerial and non-supervisory employees, not just those working in unionized environments, have Section 7 rights.

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Amanda BakerLabor, NLRB