Meta’s Non-Disparagement and Confidentiality Agreements Ruled Unlawful by NLRB
In a significant ruling, the National Labor Relations Board (NLRB) has declared that Meta’s non-disparagement and confidentiality agreements with over 7,000 former employees are unlawful. The decision comes after it was found that these agreements restricted workers’ rights to organize and unionize.
The case primarily revolved around the 2022 mass layoffs at Meta, where the majority of employees had signed the company’s separation agreement. Under this agreement, laid-off employees would receive enhanced severance pay and other benefits but were prohibited from making negative comments about Meta’s products, business affairs, or circumstances surrounding their departure. Additionally, they were not allowed to disclose the terms of the agreement.
The NLRB determined that these non-disparagement and confidentiality sections interfered with workers’ rights to discuss wages, hours, and other employment conditions, thus impeding their ability to unionize. Judge Andrew S. Gollin stated in his ruling that Meta’s language in these sections was overly broad and hindered former employees from seeking support or raising workplace concerns.
The NLRB ordered Meta to cease including unlawfully overbroad non-disparagement or confidentiality sections in separation agreements. The company must also inform all employees who agreed to such clauses that they have been rescinded. Furthermore, Meta is required to distribute a notice to employees highlighting their right to unionize under the National Labor Relations Act and affirming that the company will not interfere with such organization.
While Meta has the option to appeal the NLRB’s decision, it currently stands as a significant blow to the company. They will need to send out numerous emails informing former employees of the changes in their separation agreements.
This ruling against Meta is not an isolated incident in the tech industry. Earlier this year, the NLRB filed a complaint against SpaceX, accusing the company of unfair labor practices and unlawful dismissal. In response, SpaceX claimed that the watchdog was unconstitutional due to limitations on the President’s ability to remove NLRB judges without cause.
The NLRB’s decision in the Meta case underscores the importance of protecting workers’ rights to discuss their employment conditions and seek support from colleagues and labor organizations. It establishes that non-disparagement and confidentiality clauses cannot unreasonably restrict employees’ ability to exercise their unionization rights. This ruling sets a precedent that may have implications for other companies using similar agreements in the future.
