Monday, September 23, 2024

Employer Loses Challenge to NLRB's McClaren Macomb Restrictions on Severance Agreements

Last week, the Sixth Circuit Court of Appeals affirmed enforcement of the NLRB’s order against an employer which had failed to negotiate with the union about the affects of a layoff and presented severance agreements to the laid off employees without first informing or negotiating with the union about the terms of those agreements.  NLRB v. McLaren Macomb, No. 23-1335/1403 (6th Cir. Sept. 19, 2024).   Because that conduct – by itself – was sufficient to violate sections 8(a)(1) and (5) of the NLRA, the Court declined to consider the employer’s objections to the NLRB’s alternative conclusion that the terms of the severance agreement – concerning confidentiality and non-disparagement – constituted independent 8(a)(1) violations.   Accordingly, the employees were ordered reinstated with backpay. 

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