The separation agreements that Meta had thousands of its former employees sign during a mass layoff in 2022 were deemed unlawful, as per a recently published decision from a judge with the National Labor Relations Board (NLRB).
Between August 21, 2022, and February 20, 2023, Meta laid off 7,511 of its U.S.-based employees. Approximately 96% of those ex-employees – 7,236 individuals – voluntarily signed a separation agreement that offered enhanced severance pay and additional benefits in exchange for surrendering their rights to publicly discuss their employment or termination.
However, NLRB Administrative Law Judge Andrew Gollin stated in his recent decision that the non-disparagement and confidentiality clauses in the agreements violated workers’ rights under the National Labor Relations Act.
The decision highlighted that Meta’s separation agreements infringed upon the employees’ rights in Section 7 of the act, which grants employees the right to seek better wages, hours, and working conditions through various channels.
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According to the decision, Meta’s separation agreements violated Section 8(a)(1) of the act, which prohibits companies from interfering with employees’ exercise of their Section 7 rights.
The judge recommended that Meta cease entering into separation agreements with the “unlawful, overbroad non-disparagement and confidentiality sections” and inform all past employees who signed the agreements that those clauses have been rescinded and will not be enforced. Meta must also certify compliance with the remedies.
The case was brought to the NLRB by David James Carlson, a former Meta employee, who filed a complaint on the day after the board’s decision on McLaren Macomb in February 2023, which reaffirmed that employers cannot offer severance agreements that broadly waive employee rights under the National Labor Relations Act.
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Even though the board’s decision in the McLaren Macomb case came after Meta’s implementation of the separation agreements, Carlson argued for retroactive application of the ruling.
Meta had previously denied allegations of violating federal labor laws but has not issued a statement since the judge’s decision was released last week.
