b'However, the National Labor Relations boardrecently issued a decision prohibiting confidentiality clause in severance agreements. On February 21, 2023, in McLaren Macomb, the NLRB ruled that BOARD MEETINGbroad confidentiality clauses interfere with the LEGAL REPORTemployees right to organize and bargaincollectively [Section 7 rights.]The Board held that an employer commits an unfair labor practice by including a confidentiality clause in a severance agreement, regardless of whether the employer No confidentiality clauses in severanceactually seeks to enforce its rights under thecontract. agreementsEmployers seeking to enter a severance agreement Often, when an employer terminates an employee,with an employee should check with an attorney to the employer and employee enter into a severancedetermine whether a confidentiality clause isagreement whereby the employer agrees to pay thatnecessary and whether it could be drafted in such employer money in exchange for the employeesmanner that would not restrict Section 7 rights. promise to release the employer from employment-related liability.NLRB Increases Damage Awards to Aggrieved EmployeesThese severance agreements almost always include confidentiality clauses. Confidentiality clauses areOn December 13, 2022, the NLRB increased the important for many reasons, not the least of which ispenalties for unfair labor practices. Until then, the that the employer may not want that former employ- penalty for committing an unfair labor act was rein-er to tell other employees about the money just paidstatement, back pay going back to the violation, and to them.the cost of any lost benefits. But now, the penalty(Continued to page23) 16'