Separation Agreement

News & Analysis as of

Risky Business: Using Old Employee Release Forms May Leave You Vulnerable

An employer faces many risks when it terminates an employee, including potential claims of discrimination. Having the employee sign a separation agreement that includes a release of claims in return for payment to which the...more

Employee Separation Agreements – A Refresher, Part Three

My first two posts on this topic have discussed provisions that must – under federal law, specifically the Older Workers Benefit Protection Act – be included in employee separation agreements if the employee’s release of...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

How to Fire Your Employee Without Getting Sued

Before I even begin this post, let me advance the disclaimer right off the bat: Despite the title of this post, there is no sure-fire way to fire an employee without getting sued. Indeed, the title is a bit of a...more

New York Federal Court Rejects Mutual Non-disparagement Provision in FLSA Settlement Agreement as Overbroad

Non-disparagement provisions are commonplace in today’s settlement and separation agreements, with employers often seeking the broadest protection against disparagement. A recent decision from a New York federal court,...more

Employee Separation Agreements – A Refresher (The Sequel)

In our last post on this topic, we reviewed the essential elements of a valid employee separation agreement that includes an employee’s release of claims against the employer (i.e., the agreement must be made knowingly and...more

Seventh Circuit Reins in EEOC: Agency Cannot Bypass Conciliation Requirement

On December 17, the Seventh Circuit in U.S. Equal Employment Opportunity Commission v. CVS Pharmacy, Inc., No. 14-3653 (7th Cir. Dec. 17, 2015), rejected the EEOC’s aggressive effort to sue an employer without engaging in...more

Appellate Court Affirms Circuit Court Reversal of PAC Opinion on OMA Violation

Last year, an Illinois Circuit Court overturned a Public Access Counselor opinion that found that the Board of Education of Springfield School District No. 186 violated the Open Meetings Act when it voted on the separation...more

Employee Separation Agreements – A Refresher

There is one conversation I have with my clients who are employers more frequently than any other. It’s the one that begins, “We’ve decided to let so-and-so go. Do we have to have an agreement of some kind?” Here is what you...more

Everything Else from the ABA Labor & Employment Conference You Missed

I admit it. Misleading headline. It won’t be EVERYTHING else. But…there were a few other nuggets from the ABA Labor & Employment Annual Conference last week that are worth sharing....more

Another One Bites The Dust At “Mach” Speed: EEOC’s Age Discrimination Lawsuit Dismissed Based On Failure To Conciliate

We’ve previously blogged about the impact the U.S. Supreme Court’s landmark decision in Mach Mining v. EEOC, 135 S. Ct. 1645 (2015), most recently here and here. As we predicted, the true impact of Mach Mining will not be...more

Should Proxy Contests Be Fair?

The current surge in stockholder activism raises the interesting question whether proxy contests should be conducted fairly. Should the protagonists only tell the truth in soliciting votes or may they act like some...more

Do Discharges Resulting From a Career Planning Program Amount to Group Termination Under the OWBPA?

In Barnes v. The Hershey Company, No. 3:12-cv-01334, Judge Charles R. Breyer of the U.S. District Court for the Northern District of California granted summary judgment to an employer on the age claims brought by several...more

A Reminder to Employers That FLSA Claims Cannot Be Waived in Most Circumstances

When an employer signs a general release of claims with a former employee, it expects that the agreement and the consideration provided will prevent future legal claims. However, certain actions, such as Workers’ Compensation...more

Bankruptcy Beat: A Post-Divorce Judgment Stipulation That Modifies Obligations to a Former Spouse Does Not Likewise Modify The...

On March 3, 2015, the Honorable Albert S. Dabrowski issued a decision in Swiatowiec v. Swiatowiec (In re Swiatowiec), Adv. Pro. No. 11-2074, concerning the issue of whether obligations to a former spouse incurred in the...more

Appellate Court Notes

- SC19245 - Nation-Bailey v. Bailey - SC19245 Concurrence - Nation-Bailey v. Bailey Holding that a separation agreement that requires the payment of unallocated alimony and child support ‘‘until the …. [w]ife’s...more

Sixth Circuit Decision Refusing to Enforce Collective Action Waiver Included in Separation Agreement Remains Intact; Supreme Court...

This week, the Supreme Court disappointed many employers by declining to determine whether the Fair Labor Standards Act does or does not provide employees with a non-waivable substantive right to bring a collective action. ...more

Employer's "No Re-Hire" Provision May Violate California's Non-Compete Laws

Pretty much everyone knows that California courts do not favor covenants not to compete. We even have our own state laws that address this very issue (Business & Professions Code section 16600). But what about provisions in...more

EEOC Gets Schooled: Court Expels Challenge to College’s Separation Agreements

For the second time in less than two months, a federal district court judge has dismissed a U.S. Equal Employment Opportunity Commission (EEOC) challenge to an employer’s separation agreement due to the agency’s failure to...more

Circuit Court of Springfield Overturns PAC Opinion on OMA Violation

An Illinois Circuit Court recently overturned a Public Access Counselor opinion. The Court held, contrary to the PAC, that the Board of Education of Springfield School District No. 186 did not violate Section 2(e) of the Open...more

EEOC’s Tough Stance on Employee Separation Agreements

Employers like separation agreements. Separation agreements, of course, are contracts that employees sign when their employment is terminated that allows them to be paid severance and in exchange they usually give up the...more

The EEOC’s Assault on Separation Agreements – A Bump in the Road, But It’s Far From Over

Most employers have separation agreement forms that have served them well over the years. The terms have become fairly standardized and, aside from the occasional tweak, they don’t change much and are rarely challenged. ...more

Hurry Up and Wait: Court Decision Gives No Substantive Guidance on the EEOC's Challenges to Standard Separation Agreement...

As we noted last month, a federal district court in Illinois announced it was dismissing a controversial lawsuit brought by the EEOC against a nationwide pharmacy chain challenging that employer’s separation agreement...more

Court Dismisses EEOC’s Attack on Severance Agreements, But Not on the Merits

The EEOC’s lawsuit against CVS, which alleged that the company’s severance agreements were impermissibly restrictive, has been dismissed, but not for the reasons employers would have hoped. EEOC v. CVS Pharmacy, Inc., No....more

Like a Bad Penny, Discharged AT&T Employee Turns Up Years Later Despite No-Rehire Agreement; New Jersey Appellate Court Affirms...

The inclusion of a “no-rehire” provision in separation agreement is fairly commonplace. Likewise, a damages provision (including liquidated damages and attorneys’ fees) in the event of a breach by the former employee are...more

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