NLRB Activity Prompts Review of Standard Employment Contract Clauses

In a constantly evolving legal landscape, businesses across the globe need to stay vigilant in their review and refinement of critical documentation, including “standard” employment and separation agreements. There is an increasing urgency for this due to recent trends, most notably a burst of activity from the U.S. National Labor Relations Board (NLRB) and its General Counsel.

This heightened activity seen from NLRB and its General Counsel has triggered many employers to reconsider what they define as “standard” contract clauses. These are clauses that have over time become commonplace in employment or separation agreements. However, per the NLRB’s recent moves, these often-included clauses may need a discerning second look.

The NLRB, the U.S. federal agency that safeguards employees’ rights to collectively bargain and to be protected from unfair labor practices, has seemingly made its intention clear to reshape how employers’ contracts are scrutinized within its jurisdiction. While the specifics and full implications of this wave of activity are calls for professional legal analysis, the bare bones summary reports an increased focus placed on the contract clauses that were usually seen as innocuous.

The essence here is not to incite fear, but to indicate the importance of staying ahead of the legal curve. Businesses should seize this opportunity to diligently review not only their existing agreements, but also their methods of developing such crucial documents. Once they can better understand the in’s and out’s of the changing legal landscape, corporations can protect both their interests and the rights of their employees in a more refined, legally-tailored manner.

This dialogue goes beyond the need for a legal perspective on contract clauses. It further highlights the necessity for a consistent, proactive approach to staying in line with evolving legal regulations and trends. It’s in service to this ideal that businesses would benefit from revisiting their “standard” employment and separation agreements, keeping their eyes open for potential pitfalls, overseen opportunities, and areas poised for enhancement.

For more details on the recent activities of the National Labor Relations Board, see here.