Separation Agreement

News & Analysis as of

FLSA Collective Action Waivers In Separation Agreements May Not Be Valid In 6th Circuit

Employees discharged as part of a company restructuring can participate in a collective action lawsuit for unpaid overtime wages under the Fair Labor Standards Act (FLSA) despite waiving their collective action rights in...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

Beware! “Standard Terms” in Your Company’s Separation Agreement Might Trigger a Lawsuit: EEOC Says Common Provisions Are...

Recently, the EEOC filed two separate actions in federal court challenging form separation agreements given to employees as part of reductions in force. The agency takes issue with provisions that impact an individual’s...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 Sues Another Employer Over Separation Agreement Language

Earlier this year, the Equal Employment Opportunity Commission filed suit against the CVS drugstore chain, alleging that a form settlement agreement used by the employer illegally deterred former employees from filing charges...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

Act Now Advisory: As Defendant, Obama Administration Takes Narrower View of Whistleblower Protections Than as Enforcer - Will This...

Employers attempting to manage corporate compliance programs while balancing privacy concerns and whistleblower protections might find a certain irony, perhaps empathy, in the Obama administration's recent petition for U.S....more

EEOC Lawsuit Against CVS Could Void Standard Severance Agreement Clauses

We all know how severance agreements work. An employee suddenly finds herself out on the street. To soften the blow, the employer offers her a few additional weeks or months of salary. In exchange, the employee waives any...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

eAlert - Separation Agreements Under Attack By The EEOC: Why Some Small Changes To Your Agreements Are Advisable

The U.S. Equal Employment Opportunity Commission (EEOC) is now targeting routine language commonly found in separation agreements across the country. This is yet another in a series of aggressive tactics launched by the...more

Not Settling for Less: The EEOC’s Latest Challenge to Employee Releases

The Equal Employment Opportunity Commission (“EEOC”) recently filed a “pattern or practice” lawsuit against CVS Pharmacy, Inc., alleging that CVS uses an “overbroad, misleading and unenforceable Separation Agreement” that...more

Be Careful – Complying with Separation Agreements and Personnel File Issues

Parties often include in separation agreements a confidentiality provision, along with a provision indicating that the agreement is not to be included in the soon-to be former employee’s personnel file. Sometimes, such...more

If You Can’t Say Anything Good about Someone, Well, Keep Talking – The EEOC Challenges the Legality of Non-Disparage Agreements

As the saying goes, if it didn’t end badly, it never would have ended. That is often the case for former employees who no longer simply gripe to spouses or close friends about their former employers....more

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