Baylor Can Place Limits on Worker in Severance Pact, NLRB Rules

Baylor University Medical Center could offer a severance agreement requiring a fired worker to keep quiet about the company, to not disparage it, and to not sue, the National Labor Relations Board ruled.

The NLRB overturned an administrative law judge who found that the agreement’s confidentiality and legal-claims provisions violated federal labor law under Boeing. That 2017 decision created the board’s legal framework for work rules and employer policies.

The judge was wrong to apply that legal standard to severance agreements, the all-Republican NLRB said.

The ruling underscores that Boeing applies only when employers have rules, policies, or handbook ...