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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Busy Before the New Year: Three Recent NLRB Decisions That Will Impact Employers

Last week, the National Labor Relations Board (NLRB) continued its efforts to effectuate a strong national labor policy focused on advancing the organizational rights of workers and encouraging collective bargaining. Three recent decisions take aim at enhancing available remedies in unfair labor practice cases and facilitating organizing among smaller bargaining units.

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NLRB General Counsel Encourages Increased Scrutiny of Electronic Employee Monitoring

On October 31, 2022, the General Counsel for the National Labor Relations Board (NLRB), Jennifer Abruzzo, issued a memorandum instructing regional offices to closely scrutinize employer use of certain electronic monitoring, data collection and automated management technologies. This memorandum further evidences the NLRB’s commitment to effectuating a strong national labor policy which includes protecting employees’ organizational rights and encouraging collective bargaining as described in our November 2020 client alert. Abruzzo reiterated these policy objectives in her February 2022 memorandum issued in support of the Biden administration’s Task Force on Worker Organizing and Empowerment’s February 2022 labor report.

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NLRB Releases Notice of Proposed Rulemaking to Increase Scope of Joint Employment Relationships

On September 6, 2022, a split National Labor Relations Board (NLRB or the Board) released its long-anticipated Notice of Proposed Rulemaking that would lessen the burden in proving that two companies jointly employ workers under the National Labor Relations Act (NLRA). This proposed standard, in effect, would increase the scope of joint employment relationships to include indirect and unexercised control over the essential terms and conditions of a job. In contrast, the prior standard — adopted in April 2020 by a Republican-majority Board — required that an employer have direct and immediate control over these essential terms and conditions. Moreover, the putative joint employer had to actually exercise that control. Before that, in 2015, a Democrat-majority Board issued a decision holding that a company need only hold indirect control over the terms and conditions of employment to be considered a joint employer.

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NLRB Embraces Stringent Review of Employer Dress Codes

On August 29, the National Labor Relations Board (NLRB or the Board) overturned a 2019 decision concerning the lawfulness of employer-promulgated dress codes and workplace apparel policies. In Tesla, Inc., the Board majority held that a workplace rule or policy that limits an employee’s ability to wear union insignia and logos is presumptively unlawful unless the employer can show that special circumstances exist to justify such a rule.

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