Posted on Feb 23, 2023
Companies can no longer silence laid-off employees in exchange for severance | CNN Business
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“A severance agreement is unlawful if it precludes an employee from assisting coworkers with workplace issues concerning their employer, and from communicating with others, including a union, and the Board, about his employment,” the board wrote in its decision Tuesday.
Companies can no longer silence laid-off employees in exchange for severance | CNN Business
Posted from cnn.com
Law
Employment
Business
Posted 2 y ago
Responses: 2
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From this old Labor Relator's point of view, easy employer solution. Stop giving severence packages. They're not mandated anyway.
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I was about to make the same point as CWO4 Terrence Clark regarding severance packages.
I do agree with the NLRB about the employer not being able to constrain the free speech of separating employees (fired, laid off, quit, etc). However, as the article pointed out, this will change the dynamic of a severance negotiation.
Prior to the ruling - "Hey, sorry we have to let you go. I feel for you and because we don't want you to bad mouth the company, we're going to give you three months of pay."
Now - "Hey, sorry we have to let you go. I feel for you, but since you're leaving anyways, there's the door."
Of course, all the other reasons for a severance package remain - confidentiality about the companies business, cooperation clauses, non-cooperation clauses, non-solicitation of clients, etc.
Additionally, I'm not sure if the company offers a "kicker" in additional the package if the "kicker" can be an incentive (bribe) to keep quiet. I'm sure some savvy lawyers with try to figure some way around this (while the obvious appeal is going forward).
I do agree with the NLRB about the employer not being able to constrain the free speech of separating employees (fired, laid off, quit, etc). However, as the article pointed out, this will change the dynamic of a severance negotiation.
Prior to the ruling - "Hey, sorry we have to let you go. I feel for you and because we don't want you to bad mouth the company, we're going to give you three months of pay."
Now - "Hey, sorry we have to let you go. I feel for you, but since you're leaving anyways, there's the door."
Of course, all the other reasons for a severance package remain - confidentiality about the companies business, cooperation clauses, non-cooperation clauses, non-solicitation of clients, etc.
Additionally, I'm not sure if the company offers a "kicker" in additional the package if the "kicker" can be an incentive (bribe) to keep quiet. I'm sure some savvy lawyers with try to figure some way around this (while the obvious appeal is going forward).
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