An NLRB ruling that nondisparagement or confidentiality clauses in separation agreements are unlawful if they would restrict or interfere with an employee's labor rights applies retroactively, according to a new General Counsel guidance memo.
The NLRB put the brakes on the use of nondisparagement and confidentiality clauses in separation agreements if they require employees to waive their rights under the National Labor Relations Act.
If signed by President Biden as expected, the Speak Out Act will make nondisclosure agreements (NDAs) and nondisparagement contract clauses relating to disputes involving sexual assault and sexual harassment unenforceable by the courts if they were signed before a dispute arose.
The District of Columbia will implement its restrictions against the use of noncompete agreements beginning October 1, following delays to allow for amendments to be enacted.