Employers can no longer add a gold veil with a rose petal.
A decision by the National Labor Relations Board on Tuesday banned the practice of including severance agreements without disapproval, repealing a 2020 rule and marking a major change for cuts to American workers' rights.
The decision could have a lot at stake for tech layoff payments and workplace transparency as layoffs continue through 2023. By Tuesday, tech companies could be locked into an implied guarantee of layoffs and benefits for weeks or months. In order to get paid, former employees aren't allowed to disclose the terms of their exit or publicly report the company's problems, but that doesn't stop rumors from spreading on Blind or Reddit.
As industry layoffs mount, these golden jaws have managed to quell angry dissent. The new ruling blocks further enforcement of the ban and paves the way for employees (including those who have already signed the bans) to legally, freely and openly grieve with former colleagues or to complain to the press.
In its decision, the NLRB called the hold harmless clauses "very far-reaching" and added that "public statements made by workers in the workplace are essential to the exercise of workers' rights under the [National Labor Relations] Act."
When this matter was brought before the board, a Michigan hospital used a severance package that prohibited former employees from criticizing the company and also prohibited them from discussing the terms of their severance agreement. The hospital also threatened former employees with fines. All 11 employees in the case were union members, but the new ruling also affects non-union workplaces.
In the tech world, former Twitter employees are already taking action against the company over the terms of their sudden split after Elon Musk took over the company, according to prominent civil rights attorney Lisa Bloom, who says she represents about 100 workers.
"Twitter's separation agreement is illegal under this decision," Bloom wrote in an email to SFGATE, "because it requires confidentiality, prohibits employees from helping others take legal action against the company, and permanently prohibits former employees from posting anything negative on Twitter to do." to say." or… Elon Musk.
Former employees have a six-month statute of limitations to bring unfair labor practice allegations against employers who offered non-disparagement clauses, but it's unclear how the board will decide given the new rules.
However, the doors are open to share everything about the startup conditions, working conditions and feedback from the company.
Have you ever heard of a tech company? Be sure to contact technical reporter Stephen Council at stephen.council@sfgate.com or Signal at 628-204-5452.
