The National Labor Relations Board (NLRB) recently concluded that McLaren Macomb, a Michigan-based hospital, breached federal labor law by furloughing employees and directly negotiating severance agreements without consulting the union representing its workforce. This decision was upheld by the U.S. Court of Appeals for the Sixth Circuit. However, the court notably avoided addressing a significant aspect of the NLRB’s decision relating to broadly worded gag and non-disparagement clauses in severance agreements.
In its initial February 2023 ruling, the NLRB found that such gag orders were illegal under federal labor law. This aspect of the decision represents a departure from previous, more lenient precedents established during the Trump administration. The appeals court’s ruling bypassed this detail, focusing instead on procedural aspects surrounding the hospital’s failure to engage in collective bargaining before implementing furloughs and severance agreements.
The ramifications of this decision could have wide-reaching implications for labor relations, especially within the healthcare sector. Legal professionals should closely follow developments in this area, as unresolved issues regarding non-disparagement orders may eventually return to the forefront of judicial scrutiny.
For a detailed review of the ruling and its implications, visit the full article on Bloomberg Law.