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NDAs

National Labor Relations Board rules against use of NDAs

By August 18, 2023September 10th, 2023No Comments

NRLB ruling

Feb. 23, 2023

“In a ruling that will impact both union and non-union employees, the National Labor Relations Board (“NLRB”) held that standard non-disparagement and confidentiality provisions contained in a severance agreement were invalid …. the NLRB majority stressed that merely offering the agreement was itself an unfair labor practice.

National Law Review : https://www.natlawreview.com/article/nlrb-confidentiality-and-non-disparagement-provisions-are-unlawful

General Counsel for NRLB offers clarifications:

May 23, 2023

  • “Overly broad provisions are unlawful whether or not they are signed. Employers violate the NLRA simply by offering overly broad confidentiality and non-disparagement provisions to employees—even if employees request, or acquiesce and agree to, such terms—since employees cannot waive the future exercise of their rights.”
  • The ruling is retroactive.
  • “Employers may continue to protect trade secrets and prohibit malicious defamation.

Non-disparagement clauses must be “narrowly tailored to meet the definition of defamation as being maliciously untrue (i.e., the statements are made with knowledge of their falsity or with reckless disregard for their truth or falsity)”

https://www.daypitney.com/insights/publications/2023/05/23-nlrb-general-counsel-limits-confidentiality-non-disparagement-provisions/

Alas, no good news here for employees of organizations preaching the “Good News.” Religious organizations are exempt from NLRB rulings.

The Board will not assert jurisdiction over employees of a religious organization who are involved in effectuating the religious purpose of the organization, such as teachers in church-operated schools.”

The NLRB has a longstanding policy of declining jurisdiction over employees “who are involved in effectuating the religious purpose” of their employer.”

https://www.nlrb.gov/about-nlrb/rights-we-protect/the-law/jurisdictional-standards#:~:text=Religious%20organizations%3A%20The%20Board%20will,teachers%20in%20church%2Doperated%20schools.

 

Moral Summary:

World:  Hey! In exchange for a relatively small amount of money, we businesses have discovered that we can not only protect trade secrets and stifle competition, but we can also silence workers, sweep things under the rug permanently, and maintain our image by using NDAs !

Various Churches: Cool! We have trade secrets, too! We’re totally going to do this! Thanks for idea!

World: Actually, we’ve realized that NDAs are exploitive and unfair to workers. We’re prohibiting them from now on and invalidating the ones already signed.  As usual, religious organizations are exempt.

Various churches: NDAs are working great for us, so we’ll keep them in place. As always, thanks for the exemption!

Bible:

Q: ‘Why have we fasted, and you see it not? Why have we humbled ourselves, and you take no knowledge of it?’

A: Behold, in the day of your fast you seek your own pleasure, and oppress [“exploit” per NIV] all your workers.  Is. 58:3

Also Bible:

“Beware of the leaven of the Pharisees, which is hypocrisy.  Nothing is covered up that will not be revealed, or hidden that will not be known.  Therefore whatever you have said in the dark shall be heard in the light, and what you have whispered in private rooms shall be proclaimed on the housetops. Luke 12:1-3

God is light, and in him is no darkness at all.  If we say we have fellowship with him while we walk in darkness, we lie and do not practice the truth. 1 John 1: 5-6

Take no part in the unfruitful works of darkness, but instead expose them.  Eph. 5:11

The truth will set you free!  John 8:32

Various Churches :  You’re taking verses out of context.

 

 

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