Equal Employment Opportunity Commission Severance Agreements

The United States Equal Opportunity Commission is a federal agency created by Title VII of the Civil Rights Act of 1964. The EEOC is charged with enforcing anti-discrimination laws in the workplace.... more +
The United States Equal Opportunity Commission is a federal agency created by Title VII of the Civil Rights Act of 1964. The EEOC is charged with enforcing anti-discrimination laws in the workplace. Specifically, the Agency addresses instances where employees or applicants are discriminated against on the basis of color, race, sex, religion, national origin, disability, and/or genetic information.  less -
News & Analysis as of

Employment Law Issues in Mergers and Acquisitions

Last week, Microsoft announced its purchase of LinkedIn for $26.2 billion. This acquisition is interesting for a number of reasons, and is very likely to affect the future of professional social networking. It also got us...more

Employment Law Commentary - Volume 28, Issue 2 - February 2016

Separation Anxiety: Best Practices for Employee Severance Agreements: Employers deal with employee separations all the time. Back when I was an HR manager for a major airline, when it came time for a layoff or other...more

Seventh Circuit Affirms the Dismissal of Lawsuit Based on the EEOC's Failure to Conciliate Claims Related to Releases

On December 17, 2015, the U.S. Court of Appeals for the Seventh Circuit affirmed a district court’s dismissal of the Equal Employment Opportunity Commission’s lawsuit against CVS Pharmacy.  This lawsuit has been the subject...more

Seventh Circuit Tosses EEOC Lawsuit Challenging CVS Severance Agreements Due to Failure to Conciliate

Last month, the Seventh Circuit again rejected the Equal Employment Opportunity Commission’s attempt to declare an employer’s standard severance agreement illegal under Title VII. The EEOC and CVS Pharmacy have clashed over...more

EEOC Must Conciliate, But Still Few Answers Regarding Routine Separation Agreement Provisions

In February 2014, the EEOC sent waves through employer communities when it filed a lawsuit against a national retail pharmacy contending some of the company’s separation agreement provisions — which many considered “standard”...more

Seventh Circuit Rejects EEOC’s Attack on Severance Agreements

On December 17, 2015, the U.S. Court of Appeals for the Seventh Circuit upheld the dismissal of a lawsuit by the EEOC against CVS Pharmacy, Inc. In Equal Employment Opportunity Commission v. CVS Pharmacy, Inc., the EEOC...more

Seventh Circuit “Releases” CVS From EEOC’s Separation Agreement Attack

As we previously blogged about, the EEOC has gone on the offensive challenging employer severance agreements. In one such case, the EEOC attacked CVS Pharmacy Inc.’s standard release agreement which contained terms more...more

7th Cir. Won’t Let EEOC Skip Pre-Suit Conciliation

When CVS fired store manager Tonia Ramos in 2011, it offered her its standard severance agreement that included a broad release of waivable claims, including claims under Title VII, but explicitly preserving the right to...more

Getting Releases Right

There are times when it makes sense to resolve an actual or potential employment law claim by paying something and getting a release from the employee. Paying severance in return for a release and waiver of claims isn’t...more

Retaliation: Realities and Myths

Unlawful workplace retaliation can take several forms, and claims for retaliation arise under a number of different statutes and common law theories. Workers compensation statutes, for example, contain provisions that...more

Federal agencies attack employment agreements, and what you can do about it: 8 steps to consider

The US Securities and Exchange Commission recently caused shockwaves when it announced its first enforcement action against a company for using an allegedly improper confidentiality agreement during internal investigations....more

15 For ’15: Employment And Labor Resolutions For The New Year

While the year is still young, here are 15 New Year’s resolutions that employers may want to make: 1. Make sure your “independent contractors” are really independent contractors. ”Independent contractors” are under...more

Court Dismisses EEOC's Challenge To CVS' Severance Agreement; Holds That EEOC Failed To Conciliate With CVS

The Equal Employment Opportunity Commission (the “EEOC”) made headlines earlier this year by filing a lawsuit attacking CVS Pharmacy, Inc.’s standard severance agreement, which the EEOC argued unlawfully restricts former...more

EEOC’s Attempt to Limit Reach of Severance Agreements Hits Roadblock… Again

A federal judge in Colorado has once again stymied the EEOC’s efforts to successfully challenge an employer’s standard separation agreement as violating the Age Discrimination in Employment Act.  The decision in Equal...more

2014 EEOC Year In Review: Lots Of Action, Mixed Results

2014 has been a notable year for the U.S. Equal Employment Opportunity Commission. The agency has initiated historic litigation, issued significant new guidance and signaled increased scrutiny of background checks and...more

How Should Employers Draft Severance Agreements Post-CVS?

Last month, a federal judge in Illinois dismissed a lawsuit brought by the Equal Employment Opportunity Commission contending that a standard release agreement used by the CVS drugstore chain violated the anti-retaliation...more

EEOC Lawsuit Against CVS Pharmacy Challenging Severance Agreements Dismissed

On October 7, 2014, District Judge John Darrah of the North District of Illinois dismissed the Equal Employment Opportunity Commission’s lawsuit against CVS Pharmacy. Equal Employment Opportunity Commission v. CVS Pharmacy,...more

EEOC Challenge to CVS Severance Agreement Dismissed Due to Agency’s Failure to Engage in Conciliation

Late last year the United States Equal Employment Opportunity Commission (EEOC) sued CVS in the Northern District of Illinois claiming that the retail pharmacy’s standard form severance agreement and release violated Title...more

Federal Court Dismissal of EEOC Suit Leaves Employers Hanging

In a closely watched ruling, an Illinois federal district court handed a victory to one particular employer, but ducked a broader ruling that would have provided general guidance to companies generally that are trying to...more

Federal Court Notes Flaws in EEOC Stance on Severance Agreements

In a closely watched case, a federal district court questioned the stance of the U.S. Equal Employment Opportunity Commission (EEOC) that a severance agreement and general release of claims offered to employees can violate...more

Court Dismisses EEOC’s Controversial Severance Agreement Lawsuit

As we reported in February 2014, the U.S. Equal Employment Opportunity Commission sued CVS Pharmacy in federal court in Chicago on a novel theory that the company’s standard separation agreement unlawfully deterred departing...more

Federal Court Dismisses EEOC Lawsuit Challenging CVS Severance Agreement and Release

Employers can begin to breathe a sigh of relief after a federal judge last week dismissed a lawsuit brought by the Equal Employment Opportunity Commission against the CVS drug store chain. In the lawsuit, the EEOC took an...more

Federal Court Stops the EEOC’s Assault on CVS’s Severance Agreement

A federal court has tossed the EEOC’s controversial lawsuit against CVS seeking to invalidate its severance agreements. While the EEOC still has a similar lawsuit pending against another company in Colorado, employers can...more

EEOC's Attack On Severance Agreements Dealt Blow

As we noted earlier this year, the EEOC has begun filing legal challenges to relatively common provisions found in form severance agreements, based on the EEOC's belief that such language unlawfully interferes with employees'...more

United States: EEOC Challenges to Employer Separation Agreements

In Equal Employment Opportunity Commission v. CVS Pharmacy, Inc., No. 14-cv-863 (N.D. Ill., February 7, 2014), the EEOC alleged that a severance agreement used by CVS Pharmacy, Inc. (“CVS”) violates Title VII of the Civil...more

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