NLRB Considers Revision of Severance Decision
March 20, 2023
The National Labor Relations Board (NLRB) recently restricted the use of confidentiality and non-disparagement clauses within severance agreements.
In McLaren Macomb, et al., a Michigan hospital furloughed 11 union employees deemed “nonessential” after the COVID-19 pandemic forced the hospital to cease performing elective and outpatient surgeries. In June 2020, the hospital made the 11 furloughs permanent, and presented the employees with severance agreements, containing confidentiality and non-disparagement clauses.
The Biden-era NLRB has deemed the confidentiality and non-disparagement clauses in McLaren to be unlawful.
Under the Trump-era NLRB, such clauses would likely have been held as lawful, provided the decisions in Baylor University Medical Center and IGT d/b/a International Game Technology. It should be noted that the aforementioned decisions reversed long-settled precedent and replaced it with what the NLRB in McLaren refers to as “. . . a test that fails to recognize that unlawful provisions in a severance agreement proffered to employees have a reasonable tendency to interfere with, restrain, or coerce the exercise of employment rights under Section 7 of the Act.”
The NLRB’s decision in McLaren has explicitly overruled Baylor and IGT. In its decision it used the reinstated test to find the confidentiality and non-disparagement clauses at issue in McLaren to be unlawful.
The provisions at issue in McLaren would bar the hospital employees from providing information to the NLRB regarding the hospital’s interference with employees’ statutory rights. It would also preclude an employee from communicating with a union or board of directors, and prevent an employee from assisting another employee with issues concerning their employer.
It is likely that McLaren will be appealed, and even possible that this case arrives before the Supreme Court in due time.
If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.
“Ability is what you’re capable of doing. Motivation determines what you do. Attitude determines how well you do it.” This quote from my Notre Dame football coach, Lou Holtz, has not only resonated with me through all aspects of my life, but it has guided me in coaching employees for success. Indeed, in playing for Coach Holtz in the late 1980s and winning a national championship with him, I learned quite a bit about leadership and accomplishing goals. The following takeaways that I learned as a young adult are what I have implemented into my professional life. While the objectives of leadership — driving performance, fostering engagement, and cultivating growth — remain constant, the ways in which we motivate our teams have evolved with each generation. What inspired Baby Boomers may not resonate with Millennials or Gen Z. Understanding these generational shifts is key to effective leadership today. In today’s work environment, coaching employees is not just a leadership tactic — it’s a strategic imperative. Remote work has reshaped communication, and employee expectations have shifted toward development and purpose. Coach Holtz’s quote serves as a simple but powerful framework for effective coaching: leaders must recognize ability, fuel motivation, and shape attitudes to bring out the best in their teams. Recognizing Ability: Know What Your People Can Do The first step in coaching is understanding each employee’s strengths and capabilities. This means going beyond résumés and job descriptions to truly observe how individuals think, solve problems, and interact with others. When leaders understand what their team members are capable of, they can align tasks and goals in ways that challenge without overwhelming. Coaching helps bridge the gap between raw potential and real-world performance. Inspiring Motivation: Help People See the Why Motivation is deeply personal. What drives one employee may not matter to another. Effective coaches take time to learn what inspires their team — whether it’s growth opportunities, recognition, or a sense of purpose. By connecting everyday work to larger goals and company values, leaders can unlock intrinsic motivation. Motivated employees are more likely to take initiative, push past obstacles, and grow within the organization. The Leader’s Role in Shaping Attitude Attitude determines how work gets done. A coach’s role is to cultivate a culture where positivity, resilience, and accountability thrive. This involves addressing challenges by considering setbacks as chances for learning and demonstrating emotional intelligence. Leaders who coach with empathy and encouragement set the tone for how their teams respond to pressure, change, and collaboration. From Feedback to Forward Momentum Coaching isn’t about occasional feedback — it’s about ongoing dialogue. Regular check-ins, clear communication, and actionable suggestions create an environment where employees feel supported and empowered. Effective coaching helps people take ownership of their growth, rather than waiting for direction. It turns feedback into fuel for development. Coaching in the Modern Workplace Hybrid teams, technological shifts, and generational changes have made coaching even more essential. Today’s leaders must be more intentional about building connections and offering guidance, especially when face-to-face time is limited. Virtual coaching tools can help, but the foundation remains the same: genuine curiosity, active listening, and consistent support. The Lasting Impact of a Great Coach Coaching done well builds more than just stronger employees — it builds stronger people. When leaders take the time to develop ability, ignite motivation, and nurture the right attitude, they create lasting value for individuals and the organization. As Coach Holtz wisely reminds us, performance is not just about what you can do — it’s about how and why you do it. Derek Brown is chief administrative officer at the Royal Law Firm, LLP and a retired, nine-year NFL veteran who also gives speeches on leadership and teamwork to accomplish goals. The Royal Law Firm LLP, is a woman-owned, women-managed corporate law firm certified as a women’s business enterprise with the Massachusetts Supplier Diversity Office, the National Assoc. of Minority and Women Owned Law Firms, and the Women’s Business Enterprise National Council. If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288. Derek Brown wrote this article which was featured in BusinessWest. Click here to visit their website.
Dooley v. Nevada Gold Mines, LLC Leroy Dooley appealed the United States District Court for the District of Nevada decision to grant Summary Judgment in favor of the Defendants. Dooley alleged in his original suit that Nevada Gold Mines, LLC “NGM” violated The Americans with Disabilities Act (ADA) under failure to accommodate when they made the decision to terminate his employment after his medical leave ended. Before having to go on medical leave, Dooley worked as a Process Maintenance Tech 6. The Tech 6 role is physically demanding. An essential function of the Tech 6 role included repairing ore-processing equipment, a task that required lifting and carrying up to sixty pounds, frequently twisting, and occasionally stooping, kneeling, and crawling. Dooley’s return to work form provided by his doctor indicated he could not lift more than ten pounds, carry more than fifteen pounds, bend, squat, or twist. The United States Court of Appeals, Ninth Circuit affirmed the lower court’s decision to grant Summary Judgement in favor of the Defendants. Restructuring His Position Dooley asserts that NGM could have restructured his position and reassigned repairing ore-processing equipment to other technicians. The court concedes that role restructuring is generally a reasonable accommodation however, an employer is not required “to exempt an employee from performing essential functions or to reallocate essential functions to other employees.” Dark, 451 F.3d at 1089. Dooley also alleged that NGM could have reduced his hours as part of an accommodation while NGM continued to assert that even working part time Dooley would need to repair ore-processing equipment, an action he was still not cleared to do by his doctor even on a part time basis. Request for Assistive Equipment Dooley argued that NGM should have allowed him to use existing workplace equipment like cranes, forklifts, and dollies as assistive equipment to perform his role. Providing such equipment could typically be an accommodation but Dooley provided no evidence that he could operate the referenced equipment with his medical restrictions. Reassignment Dooley alleges that he was denied reassignment as a reasonable accommodation because he was denied reassignment to an open lab position in April 2018. However, Dooley was only cleared to work in December 2018 when the position was no longer open. NGM had other roles open at that time, and it is an undisputed fact that Dooley turned reassignment to those positions down. Per Wellington v. Lyon Cnty. Sch. Dist., 187 F.3d 1150, 1155 (9th Cir. 1999) “there is no duty to create a new position for the disabled employee." Dooley had turned down the positions that would have qualified as a reasonable accommodation, there was no expectation for NGM to create additional roles to accommodate Dooley. Request for Additional Leave It is undisputed that NGM provided Dooley with paid disability leave for over a year, including two extensions. Because of the length of the accommodation, Dooley was required to show that additional leave would have allowed him to heal and “plausibly have enabled [him] adequately to perform [his] job. Humphrey, 239 F.3d at 1136. Dooley could not provide such documentation because his doctor indicated that the restrictions were permanent. Dooley does not allege that more leave would have healed him but that it would have provided more time for him to “bid on positions that would come open.” However, Dooley failed to present any evidence that such positions opened within a reasonable time after his termination that he would have been able to perform. Take Aways NGM was able to provide documentation that they fully engaged with Dooley’s requests in good faith and that the process was hindered by Dooley’s lack of engagement and documentation. Awareness of ADA obligations and processes is the best pre-emptive protection against a claim of discrimination. If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.
