‘Yeah, that’s illegal’: Worker gets laid off. She’s offered 6 months of severance if she signs an NDA. Should she?
TikToker Erin McGoff (erinmcgoff3) recently posted about a new law passed by the National Labor Board, which rules that an employer can't require a laid-off worker to sign an NDA (non-disclosure agreement) in order to receive a severance package.
Erin says that under the new legislation, it is illegal for an employer to stipulate that an employee can only receive their severance after they sign an NDA.
@erinmcgoff3 Why it’s now illegal to force an employee to sign an NDA for severance ‼️
♬ original sound - Erin McGoff
In the clip, Erin re-enacts a scenario in which her boss lays her off. She plays the parts of both herself and the boss in the conversation.
Acting as an employer, the TikToker says, "Hey, bad news, we're doing layoffs and I'm afraid we have to let you go," to which Erin, as herself, responds, "Oh man that sucks. Do I get severance at least?"
The boss character says, "Yes! We're willing to give full pay and benefits for 6 months all we need you to do is sign this NDA."
The employee then clarifies, "So in order to get my severance I have to sign a contract silencing me from talking about my experience at this company?"
When the boss confirms that this is indeed the case, the employee says, "Yeah, that's illegal. I'm not gonna sign that and I'm still gonna get my severance."
The boss character appears confused and asks, "Um, what do you mean?"
At this point, a screenshot of a news article about the new law comes up on the greenscreen behind Erin. She says, "The National Labor Relations board just federally ruled that employers could no longer require laid-off employees to sign an NDA in exchange for a severance package."
The boss appears stunned and asks how she knew about the new law.
"I follow Erin!" the creator says. "She helps me advocate for myself and feel more confident in my career."
The skit then ends and the video shifts to Erin speaking directly into the camera, urging viewers to follow her for more tips.
The article that Erin references in the video is from CNN Business, which states that "companies can no longer silence laid-off employees in exchange for severance." The outlet goes on to report that doing so "violates employees’ rights under sections 7 and 8(a)(1) of the National Labor Relations Act."
The video accrued over 361,000 views and resonated with a number of viewers. They shared their own experiences of having to sign NDAs in the comments.
"I had to sign an NDA like this in 2021 but I changed all the wording in it so it was useless and they didn't even notice hahaha," one person wrote.
Another detailed their own strategy of what they did when an employer demanded they sign an NDA in exchange for their severance package. "I had a job that threatened to withhold my last paycheck unless i signed an nda after i quit. I said, either mail me check or i sue for wage theft."
One person said, "The NDA isn’t enforceable, so you can sign.. they just can’t come after you anymore," suggesting that employees go ahead and sign the contract in a bid to leave the business without any animosity with their employer.
Another person echoed this sentiment, urging workers to, "please just sign it, don’t argue with ur employer. The NDA isn’t enforceable but they [don't know] that you know that. If u argue they may not give severance."
But some people claimed they didn't mind leaving a company with bad blood. One wrote, "I signed it, [but] then I added “under duress” underneath my signature. They were soooo mad."
The Daily Dot has reached out to Erin via TikTok comment for further information.
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