Chuhak Chats & Tecson Tips: Does your company need to update its severance agreements?

September 28, 2023

AuthorMarkeya A. Fowler

Practice AreasEmployment

Markeya Fowler, employment attorney at Chuhak & Tecson, P.C. asks: Does your company need to update its severance agreements?

Earlier this year, the National Labor Relations Board (NLRB) issued its decision in the case of McLaren Macomb restricting a waiver of employee rights in severance agreements. The NLRB determined that a severance agreement is unlawful if it requires a broad waiver of statutory rights under Section of 7 of the National Labor Relations Act (NLRA). If a severance agreement conditions receipt of benefits on activities or statements protected under Section 7 of the NLRA, it is unlawful. This decision is retroactive and it applies to agreements that were not signed by the employee. NLRB general counsel issued a memo advising the proffer itself coerces the employee by conditioning benefits on the waiver of statutory rights. To make sure your company is in compliance, take a look at your severance agreements.