A recent ruling by a US judge has declared that Meta’s separation agreements provided to employees during the mass layoff period of 2022 were illegal. The National Labor Relations Board (NLRB) administrative law judge Andrew Gollin made this decision last week, stating that the agreements violated employee rights under the National Labor Relations Act (NLRA). The judge specifically pointed out that the non-disparagement and confidentiality clauses in the agreements restricted employees from exercising their Section 7 rights.
In response to the ruling, Meta is required to remove the problematic language from the agreements, notify all affected employees about the decision, and display notices in the workplace outlining the NLRB-given rights of employees. The lawsuit originated from the mass layoffs that occurred between August 21, 2022, and February 20, 2023, where 7,511 US-based, non-supervisory employees received a Separation Agreement. The majority of employees, 96%, signed the agreement, including the complainant David James Carlson.
Meta’s agreement reportedly offered higher severance pay and additional benefits in exchange for employees giving up their rights to discuss their employment or termination publicly. If the NLRB upholds Gollin’s decision, it could lead to significant changes in severance agreements across various industries. The tech industry alone experienced over 165,000 layoffs in 2022, with additional layoffs in 2023 and 2024.
Gollin emphasized that Meta’s agreements, even though they were drafted before the McLaren Macomb decision, still violated the newly established standards. The decision states, “The General Counsel argues McLaren Macomb should be applied retroactively, and that under that standard Respondent violated the Act by offering the separation agreements containing the unlawfully overbroad sections at issue.”
TechRadar Pro reached out to Meta for comment on the case, but did not receive an immediate response. This ruling could have a significant impact on how companies handle mass layoffs and severance agreements in the future. Stay tuned for updates on this developing story.
In other news, check out the best job sites and recruitment platforms for your business needs. Additionally, many laid-off tech workers are venturing into entrepreneurship, and we have compiled a list of the best hybrid working tech to help you succeed in this new era.
With years of experience freelancing in the tech and automotive sectors, Craig is passionate about technology that enhances our lives, such as AI, productivity tools, and smart fitness gadgets. He also has a keen interest in cars and sustainable transportation. Look out for great deals and valuable insights from Craig in his articles.