Matthew A. Fontana, Sarah C. Blackadar, Author at Laborsphere

Retail Employers and the National Labor Relations Act

Our latest briefing dives into new local laws about AI and how it affects both employment and insurance industries, the launch of NIST’s Trustworthy & Responsible Artificial Intelligence Resource Center and the plans for it moving forward, new guidance from the FDA on cybersecurity and on artificial intelligence/machine-learning frameworks, and the Coalition for Health AI’s quality assurance standards for use of AI in the health care and related industries.

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NLRB New Information Sharing Agreement Takes Aim at Employer Surveillance

On March 7, 2023, the National Labor Relations Board (NLRB) announced a new information sharing agreement with the Consumer Financial Protection Bureau (CFPB). The agencies executed a memorandum of understanding that will remain in effect indefinitely and permit the sharing of nonpublic information, including information about ongoing investigations. According to the NLRB and CFPB, the agreement will help improve the enforcement of both federal consumer financial protection laws and labor laws, with a heightened focus on employer surveillance and employer-driven debt.

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NLRB General Counsel Issues Guidance on Severance Agreement Restrictions

On March 22, 2023, the General Counsel of the National Labor Relations Board (NLRB or the Board), Jennifer Abruzzo, issued guidance about the Board’s McLaren Macomb decision from earlier this year. The guidance made clear that the General Counsel will, when given the opportunity, prosecute a case before the Board to have the NLRB invalidate provisions in severance agreements that attempt to restrict the rights of departing employees to engage in activity protected by the National Labor Relations Act (NLRA). The General Counsel also emphasized her view of the retroactive application of the decision, noting that employers attempting to enforce old severance agreements will face new unfair labor practice liability even if the statute of limitations has run since the execution of the now-unlawful agreement. Although the General Counsel’s memorandum is not law, employers should pay close attention as the guidance indicates the position the General Counsel will take in prosecuting allegedly unlawful severance agreements.

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NLRB: Severance Pay Cannot Include Condition to Waive Rights Under NLRA

The decision of the National Labor Relations Board (the Board) in McLaren Macomb, 372 NLRB No. 58 ( Feb. 21, 2023), reinstates a limit on the confidentiality, non-disclosure, and non-disparagement clauses that employers may include in severance agreements with most of their lower-level employees. While the Board bills its decision as a return to the standard applied in earlier cases, this decision suggests that the Board will take a broader view of how such agreements infringe on employees’ rights under Section 7 of the National Labor Relations Act.

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NLRB Finds Secret Workplace Recordings to Be Protected Activity

On February 13, 2022, the National Labor Relations Board (NLRB) held that Starbucks violated federal labor law at multiple locations in Philadelphia in 2019 and 2020. The decision, issued by the NLRB’s three Democrats, found that Starbucks unlawfully threatened, surveilled, and interrogated employees, prohibited discussion of terms and conditions of employment, reduced the work hours of union supporters, and ultimately terminated two employees for engaging in protected activity.

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FTC Seeks Feedback on Proposed Rule on Use of Non-Competition Agreements

The Federal Trade Commission announced that it will hold a virtual public forum on Thursday, February 16, 2023, to address its proposed rule on the use of non-competition agreements, as well as certain non-solicitation and non-disclosure agreements. The purpose of this forum is to examine the proposed rule and provide an avenue for individuals, including both employees and employers, to voice their opinions and discuss their experiences with non-compete agreements.

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