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H M S In the news Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification. It indicates an expandable section or menu, or sometimes previous / next navigation options. HOMEPAGE 0 Newsletters An icon in the shape of a person's head and shoulders. It often indicates a user profile. Log in Subscribe Home It indicates an expandable section or menu, or sometimes previous / next navigation options. News Employers can't force you to keep quiet to get severance, labor board decides, reversing Trump-era rulings Charles R. Davis 2023-02-22T01:09:27Z A bookmark The letter F. An envelope. It indicates the ability to send an email. An curved arrow pointing right. A stylized bird with an open mouth, tweeting. Twitter The word "in". LinkedIn A stylized letter F. Flipboard The letter F. Facebook An envelope. It indicates the ability to send an email. Email An image of a chain link. It symobilizes a website link url. Copy Link Read in app NLRB logo in front of US flag The NLRB ruled that employers can not require employees to sign non-disparagement clauses as part of a severance agreement. Rafael Henrique/SOPA Images/LightRocket via Getty Images [top-left] [bottom-rig] Redeem now * Companies can't require employees to waive their rights as part of a severance agreement. * In a ruling on Tuesday, the National Labor Relations Board said such requirements are "unlawful." * Workers can't be forced to "choose between receiving benefits and exercising their rights," NLRB's Lauren McFerran said. Top editors give you the stories you want -- delivered right to your inbox each weekday. Something is loading. Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address [ ] [Sign up] By clicking 'Sign up', you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy Policy. Companies that make former workers promise not to disparage their former employers in exchange for a severance payment are breaking the law, the National Labor Relations Board ruled Tuesday, restoring what it said was an "important principle and longstanding precedent" that employees cannot be coerced into waiving their rights. The decision concerned a Michigan hospital that, in the midst of the COVID-19 pandemic, terminated 11 union employees and asked them -- in exchange for a payout -- to sign severance agreements barring them from making public comments "which could disparage or harm" the company. In 2020, the NLRB, at the time operating with a Republican majority, twice ruled that such limits on speech were legal, arguing in one of its decisions that severance agreements with nondisparagement clauses are "entirely voluntary." But those earlier rulings were flawed, the NLRB's new Democratic majority said Tuesday, asserting that employees cannot waive their rights under federal labor law -- and that asking them to could affect the rights of those still on the job. "We therefore overrule both decisions and return to the prior, well-established principle that a severance agreement is unlawful if its terms have a reasonable tendency to interfere with, restrain, or coerce employees in the exercise of their Section 7 rights," the board said, referring to the right under federal law to engage in collective action, such as union organizing, to improve workplace conditions. Nondisparagement clauses, it reasoned, could prevent former workers from being able to assist investigations into ongoing labor law violations. The NLRB is a five-person organization whose members are nominated by the president. It's current chairperson, Lauren McFerran, is a Democrat who has served since January 2021. The lone dissenter on Thursday's ruling, Marvin Kaplan, was appointed in 2017. In a statement, McFerran said Thursday's ruling reflected an understanding that "employers cannot ask individual employees to choose between receiving benefits and exercising their rights under the National Labor Relations Act." Have a news tip? Email this reporter: cdavis@insider.com A picture of a switch and lightbulb [light-swit] Sign up for notifications from Insider! Stay up to date with what you want to know. Subscribe to push notifications Read next NOW WATCH: NLRB Severance Labor law Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification. Recommended Video Insider [Insider-lo] Business Insider [BI-logo-da] Follow us on: [svg] [facebook] [svg] [twitter] [svg] [linkedin] [svg] [youtube] [svg] [instagram] Download on the App Store [app-store-] Get it on Google Play [google-pla] * * Copyright (c) 2023 Insider Inc. All rights reserved. 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