Labor Board Could Loosen Curbs on Nondisclosure Agreements

The federal labor board could soon make it easier for businesses to require workers to sign confidentiality agreements in exchange for severance pay, a decision that would likely get lots of scrutiny in light of the national attention surrounding sexual harassment on the job.

The National Labor Relations Board’s new Republican members, Marvin Kaplan and William Emanuel, said last week that they’d like to reconsider the legality of confidential severance agreements “to the extent” such agreements are “not already permitted under Board precedent.”

The board has previously barred broad contractual obligations that members said infringe on workers’ right to engage ...