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Los Angeles Times
Los Angeles Times
Business
Jaimie Ding

Gag order ruling could free up ex-Twitter employees to criticize Elon Musk

Shut up and take the money, companies told laid-off employees. Literally.

In the tech industry, which recently has been roiled by waves of layoffs, many companies have dangled in front of workers sometimes generous sums of severance pay. The catch: To get it, often they must sign agreements that include a non-disparagement clause prohibiting them from speaking negatively about the company in public.

On Tuesday, the National Labor Relations Board ruled that including such a broad non-disparagement stipulation as a condition of receiving severance violates employees' rights under federal law. While the ruling appears to shift some power back in the hands of workers, much remains unclear on how it will be implemented.

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