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
NYS Legislature Passes Amendment to Pay Transparency Law

As we previously reported, New York State enacted a pay transparency law requiring employers to include in each job advertisement the range of compensation for the role and a job description for the role, if such description exists. The law goes into effect on September 17, 2023. Last week, the NYS Legislature passed a bill that, if signed by the Governor, could both expand and narrow the geographic scope of the law.

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NYC Introduces Amendment to Salary Disclosure Law

As New York City employers are aware, employers are required to include the minimum and maximum salary or hourly wage in any advertisement for a job, promotion, or transfer opportunity. Guidance previously issued by the NYC Commission on Human Rights stated that other forms of compensation or benefits, such as insurance benefits and bonuses, did not need to be disclosed in job advertisements. However, last week the NYC Council introduced an amendment to the law that would require the disclosure of additional compensation and benefits in job advertisements.

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Amanda BakerRecruiting, NYCHRL
NYS Department of Labor Publishes Proposed Updates to Model Sexual Harassment Prevention Policy

As New York employers are aware, the New York Labor Law requires employers to adopt a sexual harassment prevention policy. As part of the requirement, the New York State Department of Labor (“NY DOL”) published a model policy and employers that do not adopt the model policy must ensure that the policy that they adopt meets or exceeds minimum standards outlined by the NY DOL. The law requires that this model policy be evaluated and updated as needed every four years.  On January 12, 2023, the NY DOL published a proposed model sexual harassment prevention policy, which revises the current model policy based on feedback received from workers, employers and other stakeholders during a public hearing. The proposed model policy is available for review and final feedback during a 30-day comment period ending February 11, 2023.

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