Severance Agreements

International Dismissal Toolkit: Individual Employment Terminations and Reductions-in-Force Outside the United States

by Donald C. Dowling, Jr. | White & Case LLP on 5/16/2013

Firing an employee in the United States can be a challenge. Group firings—reductions in-force — can be an even bigger challenge. And from the point of view of a multinational headquartered in the United States, overseas...more

Global HR Hot Topic - May 2013: Individual Employment Dismissal Obligations Outside the US

by Donald C. Dowling, Jr. | White & Case LLP on 5/2/2013

Challenge: Overseas, dismissing an individual employee gets complex and is heavily regulated. Dismissal mandates under foreign law tend to fall into three broad categories: dismissal procedures, pre-termination notice...more

Massachusetts Wage Act Release Must Be Clear and Specific

by Mark H. Burak | Ogletree, Deakins, Nash, Smoak & Stewart,... on 2/9/2013

The Massachusetts Supreme Judicial Court recently addressed a significant issue to Massachusetts employers—whether general releases can bar employees from bringing Wage Act claims against their employers. Crocker v. Townsend...more

Jury Verdict Highlights Dangers of Destroying Evidence

by Kenneth Vanko | Clingen Callow & McLean, LLC on 1/30/2013

Those of us practicing unfair competition law often find ourselves in a unique spot. When we counsel clients - really, departing employees - we can help shape the facts of a potential lawsuit. Imagine for a second you're a...more

Hallmark Recoups Former Executive’s Severance Pay Seven Years after Separation Agreement

by Mary Theresa Metzler, Claire Ana-Perot Tracey | Ballard Spahr LLP on 1/22/2013

Seven years after entering into a separation agreement with one of its executives, Hallmark Cards, Inc. brought suit against the former employee, seeking a “full refund” of the $735,000 severance it paid her....more

Don’t Sign Away Discrimination Claims to Get Severance Pay

by Michele Bowman | Lawyers.com on 1/2/2013

Trinity Health Corporation on Dec. 20 settled charges brought by the EEOC over the employer’s alleged policy of Finger pointing to show where to sign documentdenying or delaying severance to employees who file discrimination...more

Trinity Health Corporation Agrees to Settle EEOC Retaliation Lawsuit

by U.S. Equal Employment Opportunity Commission... on 12/21/2012

Company Had Policy of Delaying or Denying Severance Payments to Employees Who Signed Severance Agreements and Then Filed Discrimination Charges, Agency Says - INDIANAPOLIS - Trinity Health Corporation, a national...more

Year-End Deadline Approaching for Code Section 409A Corrections

by Duane Morris LLP on 11/30/2012

Employers should be aware that December 31, 2012, is the Internal Revenue Service's (IRS) deadline for correcting certain documentary violations under Internal Revenue Code Section 409A ("Section 409A"). Specifically,...more

Expiration of 409A Correction Period Regarding the Timing Requirement to Execute a Release Agreement

by John J. Heber | Manatt, Phelps & Phillips, LLP on 11/30/2012

The payment of severance in the event of a termination of employment is often conditioned on the execution of a release agreement. This requirement may violate the documentary requirements of Code Section 409A ("409A") if the...more

Employers May Be Entitled to FICA Tax Refund On Severance Payments

by Dinsmore & Shohl LLP on 11/28/2012

If the recent decision of the Sixth Circuit Court of Appeals in United States v. Quality Stores survives appeal by the IRS, employers could be entitled to a refund of FICA taxes paid by them after 2008 on severance payments...more

409A Update: Employment Agreements Requiring Executed Releases May Need to Be Amended by December 31

by Randall I. Cherkas, Michael J. Crumbock | Pepper Hamilton LLP on 11/26/2012

It is standard practice that employment agreements condition payment of severance benefits or other separation compensation on the employee executing a general release of claims against the employer. However, unless...more

Deadline Approaching for Section 409A Year-End Correction

by Beth Alcalde, Ian L. Minkin, Leanne Reagan, Peter E. Salomon | Akerman Senterfitt on 11/26/2012

Section 409A Year-End Correction Deadline: Compensation arrangements such as employment or severance agreements, that provide for payments that are contingent on the execution of a release, must be brought into compliance...more

Employment Contracts and Severance Agreements Should be Reviewed and May Need to be Amended by December 31 to Comply with Section...

by Dan S. Brandenburg, Joanne G. Jacobson | Saul Ewing LLP on 11/20/2012

Severance agreements and employment contracts with release of claims provisions may violate 409A of the Internal Revenue Code. Bad release provisions may be fixed, penalty-free, before December 31, 2012. Most severance...more

Relief for Correcting Certain Internal Revenue Code Section 409A Failures Expires This Year

by Proskauer Rose LLP on 11/16/2012

The Treasury Department and the IRS have provided favorable transition relief for correcting arrangements that impermissibly condition the payment of nonqualified deferred compensation on a service provider's completion of...more

Sixth Circuit Holds that Severance Payments Are Not Subject to FICA Taxes

by Kevin J. Hogan, Marvin S. ("Bucky") Swift, Jr. | Snell & Wilmer L.L.P. on 11/15/2012

In United States v. Quality Stores, Inc., et al., the United States Court of Appeals for the Sixth Circuit recently held that severance payments qualified as supplemental unemployment compensation benefit (SUB) payments and...more

Section 409A Transition Relief Deadline Quickly Approaching

by Christopher K. Buch, Daniel B. Lange | Katten Muchin Rosenman LLP on 11/14/2012

As the end of the year approaches, important transition relief from penalties and excise taxes imposed by Section 409A of the Internal Revenue Code (the Code) is about to expire. If an employer has an employment agreement or...more

Benefits Update, No. 4, November 2012: Deadline to Correct 409A-Covered Documents Involving Employee Releases Is December 31, 2012

by Callan G. Carter | Fisher & Phillips LLP on 11/13/2012

Internal Revenue Code Section 409A governs deferred compensation, which includes, with some exceptions, practically all agreements or plans in which an agreement is made in one year to pay an amount in a later year. Its most...more

Year-end Deadline for Correcting Section 409A Deferred Compensation Arrangements Conditioned on Employee Release or Covenant

by Peter J. Hunt | Pillsbury Winthrop Shaw Pittman LLP on 11/12/2012

By December 31, 2012, all deferred compensation arrangements in which payment is contingent on employee action, such as execution of a release of claims, must either include payment-timing restrictions that comport to IRS...more

McAfee & Taft EmployerLINC Employee Benefits Law Alert: Year-end IRS deadline looms for correcting release language in 409A...

by McAfee & Taft on 11/9/2012

Employers with employment agreements, severance policies, and other non-qualified deferred compensation agreements that contain language conditioning any payment on employee action, such as the execution of a release of...more

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