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Non-Disparagement Clauses Voided

Have you ever signed a Non-Disclosure Agreement with a Non-Disparagement Clause?

The general counsel of the National Labor Relations Board issued a memo this week clarifying one of the biggest open questions after the NLRB rules broad non-disparagement clauses were illegal.

What Is a Non-Disparagement Clause? A non-disparagement clause simply states that you won't say anything negative about the company or its products, services, or leaders—in any form of communication.

The memo offers guidance on the decision’s scope and effect, such as the retroactive effect of the decision and the application of the decision to supervisors. The memo also provides guidance on the kinds of severance agreement provisions that could violate the Act if proffered, maintained, or enforced, including confidentiality, non-disclosure, and non-disparagement, among others.

This has huge implications for current and former employees' ability to talk about the perceived nature of their workplaces. This directly affects workplace liability insurance.

James Felton Keith goes a bit deeper on this news in the podcast below.

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