Legal Alert: Fifth Circuit Finds Confidentiality Provision Violates NLRA

Executive Summary: The Fifth Circuit recently found that a confidentiality agreement prohibiting disclosure of “financial” and “personnel information” was unlawful under the National Labor Relations Act (NLRA). Employers who use confidentiality agreements to protect their confidential business information should use caution to ensure that the terms of the agreement will not be construed to prohibit employee discussion of wages or other terms and conditions of employment.