Severance Agreements in Spotlight! Are you in the Dark?

On February 21, the NLRB ruled that employers may not offer employees severance agreements that require employees to broadly waive their rights under the National Labor Relations Act.

 

The decision looks to toss out non-disparagement clauses for non-management employees. Will it hold up in courts? How should employers tread in the meantime? You have questions, Phil and Burt have answers, well, we suppose “that depends”.

 

Lawyer on the Clock:

4:23 - A recent case filed under the Fair Labor Standards Act brings to light how exemptions work in regards to paid overtime. There are many exemptions under this law for salaried employees, but there are limitations employers should be aware of. The results of this case offer a roadmap for employers to comply.

 

11:49 - President Biden has nominated Julie Su as the new Secretary of Labor. She previously led the California Labor and Workforce Development Agency, so we can expect to see many of the labor standards in California brought to the national level. 

 

Philburt’s Phorum: 

14:01 - Genbot the AI guest host, actually named Monique, visits again to plead her case to remain as permanent cast member. Phil shares some vacation photos. 

 

The Employer’s Lounge

18:12  -  Phil and Burt discuss severance agreements, and the big changes coming from the NLRB to what can be included in them and how confidential they can be. Future agreements will likely need to include language about not restricting an employee’s Section 7 rights under the National Labor Relations Act, meaning they have the right to engage in protected activity of discussing terms and conditions of employment with coworkers. 

 

28:45 - Poll results: Most of our listeners have not had an employee sue over a severance agreement. Those who have offered severance mostly offer compensation or stock options and have liability waivers. 

 

Host(s): 

Phil Brandt, President & CEO, AAIM Employers’ Association

Burt Garland, Shareholder, Ogletree Deakins

 

Guest(s):

Monique

 

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