NLRB rules Meta's 7,200 confidentiality agreements unlawful

The National Labor Relations Board (NLRB) has declared Meta's non-disparagement and confidentiality agreements with over 7,200 former employees unlawful.

The ruling, which addresses the restrictive nature of these agreements, highlights their negative impact on employees' rights to unionize, according to Mashable.

In a comprehensive, 19-page decision, NLRB judge Andrew S. Gollin found that the confidentiality and non-disparagement clauses in Meta's separation agreements violated workers' legally protected right to organize. These agreements primarily affected the more than 7,000 employees laid off during Meta's 2022 mass layoffs, the majority of whom signed the company's 11-page separation agreement.

‘Enhanced severance pay’

Under the agreement, laid-off employees received "enhanced severance pay" and other benefits in exchange for agreeing not to disparage or criticize Meta's products, business operations, management, or financial condition, according to a Mashable article. Additionally, former employees were prohibited from disclosing the terms of the agreement.

Judge Gollin concluded that these clauses unlawfully restricted workers' rights by preventing them from discussing workplace issues, wages, and conditions with co-workers, labor organizations, or the public. This restriction extended even to truthful statements about their employment or separation from Meta.

The NLRB found that Meta used "overly broad" language and said the non-disparagement and confidentiality restrictions prohibited former employees from raising workplace concerns with co-workers, labour organisations, or the public, preventing them from finding support when dealing with labour disputes, said Mashable.

"This prohibition… reasonably would tend to discourage protected conduct, including making comments to seek the assistance and support of other employees or third parties regarding labor disputes or issues related to terms and conditions of employment with [Meta]," wrote Gollin.

"[P]ublic statements by employees about the workplace, their employment, or their separation are central to the exercise of [workers' rights to unionise]. The sections at issue prohibiting disclosure or commentary… are unlawful because they discourage statutorily protected communications with others, including the public."

Meta plans appeal of NLRB ruling

Meta, formerly known as Facebook, confirmed that it plans to appeal the ruling.

"Meta disagrees with the judge's decision and, in particular, the decision to retroactively apply a new legal standard," a Meta spokesperson told Mashable. "Meta does not have a crystal ball allowing it to foresee when or how the National Labor Relations Board will decide to change the law, and as the judge specifically found in his decision, Meta did not violate the law in effect at the time the company offered the separation agreements."

The NLRB has ordered Meta to cease using "unlawfully overbroad" non-disparagement or confidentiality clauses in its separation agreements, said Mashable. Moreover, Meta must notify all affected employees that these sections have been rescinded and inform them of their right to unionize under the National Labor Relations Act.

Meta is also required to distribute a notice to current employees affirming their right to organize without interference.