SimplyHR | Employment & Labor Blog 

The National Labor Relations Board (NLRB) issued a decision on February 21, 2023, that restored pre-Trump era precedent and prohibits employers from offering employees severance agreements that contain broad confidentiality and non-disparagement provisions.

In the case at issue, McLaren Macomb and Local 40, RN Staff Council Office and Professional Employees International Union, AFL-CIO, 372 NLRB No. 58 (2023) (McLaren), the issue was whether Michigan hospital operator McLaren Macomb violated the National Labor Relations Act (NLRA) when it offered severance agreements with broad confidentiality and non-disparagement requirements to 11 employees furloughed because of the COVID-19 pandemic.

As many employers continue to deal with the prospect of a more remote workforce moving forward, what are the best practices related to restrictive covenants, information privacy, employee onboarding, and protecting trade secrets? Greensfelder attorneys Jim Ferrick, Jill Luft and Chris Pickett recently presented “Restrictive Covenants and Trade Secret Considerations for a Remote Workforce” for the St. Louis chapter of the Association for Corporate Counsel, covering steps to protect confidential business information. Here are nine key takeaways from their discussion.

Buyer beware as the asset protection afforded by non-disclosure and non-solicitation agreements signed by prospective purchasers may not survive the sale. This issue was addressed in a recent federal decision in Illinois offering some cautionary reminders for business buyers. In this case, Keywell LLC (“Keywell”) sought to sell its assets. Croniment Holdings, Inc. (“Croniment”), a bidder for Keywell’s assets, signed a non-disclosure agreement (the “NDA”) which prohibited Croniment from disclosing Keywell confidential information and prohibited Croniment from hiring any of Keywell’s employees with whom Croniment came into contact during negotiations. Keywell and Croniment entered into an asset purchase agreement by which Croniment would serve as the stalking horse bid for Keywell’s assets in bankruptcy.

Facebook, Twitter, Instagram - what better way to announce an unexpected European vacation to your friends? That is, unless the funds used for the trip are the proceeds of a settlement agreement containing a confidentiality provision. In that case, according to a Florida court, social media is definitely not your friend (Gulliver School, Inc. v. Snay, 2014 51911, Fl. Dist. Ct. App., 2/26/14).