In a June 27, 2008 decision, the National Labor Relations Board ruled that a temporary employee placement agency violated the law by including a confidentiality provision in employment contracts prohibiting placed workers from disclosing the terms of their employment.  In Northeastern Land Servs. Ltd. d/b/a NLS Group, 352 N.L.R.B. No. 89, Board Chairman Peter C. Schaumber and Member Wilma B. Liebman reversed the administrative law judge's decision dismissing the complaint.  The Board held that the confidentiality provision violated the National Labor Relations Act because employees reasonably would understand it as prohibiting them from discussing their terms of employment with union representatives.

The challenged provision in the contracts read:

Employee understands that the Employee will have direct access to and contact with NLS’ various clients as Employee performs services hereunder and Employee agrees to keep all information obtained or utilized in the course of performing its services strictly confidential. Furthermore, Employee agrees not to solicit work or accept assignments from any of NLS’ clients directly while engaged in services hereunder, or for a period of six (6) months after the termination of this agreement. Employee also understands that the terms of this employment, including compensation, are confidential to Employee and the NLS Group. Disclosure of these terms to other parties may constitute grounds for dismissal.  [Emphasis added.] 

Relying on well-established precedent, the Board concluded that employees would reasonably construe this language to prohibit activity protected by Section 7 of the National Labor Relations Act. 

While this is not exactly "new law," it provides notice for prudent employers to review their existing confidentiality policies to ensure they are properly tailored in compliance with the National Labor Relations Act.