Release Agreements

News & Analysis as of

EEOC Challenges Overbroad Medical Releases In Lawsuit Against Cummins Power

Company Violated Two Federal Laws by Making Invasive and Irrelevant Inquiries Through Its Medical Releases, Federal Agency Charges - MINNEAPOLIS - Shoreview, Minn.-based Cummins Power Generation violated federal law by...more

Sixth Circuit Voids FLSA Collective Action Waiver Signed as Part of Separation and Release Agreement in Killion v. KeHE...

On July 30, 2014, the Sixth Circuit Court of Appeals invalidated a collective action waiver signed as part of a separation and release agreement. The ruling is significant because it is the first time a federal appellate...more

Waivers of Age Discrimination Claims in Reduction in Force Cases Continue to Face Intense Scrutiny

A Federal court in Colorado recently permitted a former employee to advance an age discrimination claim despite his prior execution of a severance and release agreement after his employment ended in connection with a...more

The EEOC Strikes Again

In a suit filed in February, the Chicago District Office of the Equal Employment Opportunity Commission (EEOC) argued that the separation and release agreements used by CVS Pharmacy were “overly broad, misleading, and...more

EEOC’s Battle Against Employee Releases Heats Up

In February, we commented on the EEOC v. CVS Pharmacy, Inc. case, where the EEOC filed a “pattern or practice” lawsuit against CVS in Illinois federal court, claiming that CVS’ employee releases discourage the filing of EEOC...more

They Really Mean It: the EEOC Sues Another Employer for Allegedly Overbroad Releases

Recently, the Chicago District Office of the Equal Employment Opportunity Commission (EEOC) sued CVS Pharmacy, Inc. because CVS required employees to sign a release that the EEOC claims was “overly broad, misleading, and...more

The EEOC Takes Aim, Once Again, at Employers’ Separation Agreements

On April 30, 2014, the U.S. Equal Employment Opportunity Commission filed suit against a private college, charging for the second time in two months that an employer’s severance agreement was unlawful. The EEOC alleged that...more

Eleventh Circuit Affirms Ability to Obtain Release of FMLA Claims

When the Family and Medical Leave Act became effective, federal courts split on the ability of employers to obtain effective releases of FMLA liabilities. In 2009, the Department of Labor provided some clarity to this issue,...more

Medical Staff Application Release Bars Physician Credentialing Claim

In Copeland v. MidMichigan Regional Medical Center, a Michigan State Appellate Court affirmed a trial court’s grant of summary judgment in favor of the Hospital, based upon both HCQIA immunity and a general release signed by...more

Releases of Liability: Do's and Don't's for Employers

Employers often use waivers and releases of claims in agreements with former employees, either as part of a separation agreement at the time employment ends or in a settlement agreement after a former employee has raised...more

Recommendations in Response to the EEOC’s New Lawsuit on Severance Agreements

On February 7, 2014, the Chicago District Office of the Equal Employment Opportunity Commission brought suit in the U.S. District Court for the Northern District of Illinois against CVS Pharmacy, Inc., claiming that a...more

Take 5 Newsletter: Five New Challenges Facing Retail Employers

Retailers face new challenges every day as a result of legislation, litigation, and technology. This Take 5 addresses some of these challenges. 1. Pregnancy Accommodation - Several states and municipalities...more

In Drafting A Release, You May Want To Define “Affiliate”

It is not uncommon for a release to include not just the released party but affiliates of the released party. I suspect that it is far less common for a release agreement to actually define what is meant by “affiliate”. ...more

Validity And Enforceability Of Seaman’s Release

The recent ruling in Double J. Marine, LLC v. Matthew Nuber, No. 13-5825 (E.D. La. Dec. 11, 2013) serves as a key reminder that employers need to be mindful that courts scrutinize release agreements as seamen are the wards of...more

In Connecticut, Global Release “Non-Binding” With Respect To Workers’ Compensation Claims Until Approved By Commissioner

In a recent decision, the Connecticut Supreme Court gave teeth to the provisions of Connecticut General Statute § 31-296 of the Connecticut Workers’ Compensation Act—which provide a mechanism through which employers and...more

Releases of Liability as Part of Licensing Deals – How Hard to Push?

Christopher Barnett, Scott & Scott, LLP attorney, discusses the importance of requesting releases of liability when negotiating new software licenses or support renewals....more

Florida High Court To Examine Exculpatory Clauses That Do Not Specifically Reference Negligence

On November 5, 2013, the Florida Supreme Court heard oral argument in a case examining whether a release clearly and unambiguously releases the defendant from liability for a plaintiff’s physical injuries when the release...more

A Release Fails To Persuade Canada’s Privacy Commissioner To Discontinue Investigation

In case you missed it, the Office of the Privacy Commissioner of Canada (OPC) posted Report of Findings #2013-004 (dated July 18, 2013) on November 4, 2013 relating to an access inquiry by a former employee of a bank under...more

Natural Gas Boom Fuels Requests for Partial Releases from Mortgage Liens

Residential lenders and servicers are continuing to see a larger impact from the natural gas boom, and it is not just from properties hosting drilling operations. More lenders are seeing increasing numbers of borrowers...more

Court Upholds Waiver And Release Clause

An Illinois Appellate Court recently upheld a waiver and release clause in a fitness club’s membership agreement that barred an injured member from seeking damages in court. In Hussein v. L.A. Fitness International, the...more

Buying Peace?

Every employment relationship ends at some point, and some end involuntarily and with hard feelings. Sometimes, hard feelings come from current employees as well. When these hard feelings exist, employment claims are...more

New Law on the Horizon for Illinois Employers Settling Tort Claims

On January 1, 2014, a new section of the Civil Practice Law, “Settlement of claims; payment” (735 ILCS § 5/2-2301), will take effect. The Illinois legislature passed the law in an effort to expedite the payment process in...more

New Illinois Legislation Requires Settling Defendants In Certain Civil Litigation To Promptly Deliver Releases And Payments To...

A new Illinois law aimed at preventing defendants from delaying payment after agreeing to settle a claim will impact Illinois employers that settle certain tort claims. The new section of the Civil Practice Law, “Settlement...more

New Jersey Decision Offers Cautionary Tale to Employers Regarding How Courts May Interpret Whether Employee’s Release is Knowing...

On August 26, 2013, the New Jersey Appellate Division reversed a grant of summary judgment to an employer upon concluding, based on little more than the plaintiff’s self-serving statements, that its former employee’s detailed...more

Severance Agreements: What Are They Good For?

Employers frequently use severance agreement when terminating an employee or when an employee resigns with the hopes of reducing potential liability. In our practice, we often advise employers to offer severance pay that is...more

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