NLRB Declines to Axe Biden-Era Severance Pact Policy for Now

April 7, 2026, 10:01 PM UTC

The Republican-controlled National Labor Relations Board declined to overturn a heavily scrutinized 2023 precedent that banned severance agreements with overly broad or restrictive language because they lack a three-member majority.

The NLRB on Tuesday upheld an administrative law judge who relied on the board’s McLaren Macomb decision to find that Prime Communications LP’s severance agreement violated federal labor law.

In McLaren Macomb, a Democrat-controlled panel ruled that a severance agreement violates labor law if its terms interfere with workers’ organizing rights.

The current board’s Trump-appointed members, Chair James Murphy and Scott Mayer, said they were “open to reconsideration of ...

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