In Lovely v. Prestige Travel Ltd., 2013 ABQB 467, the Alberta Court of Queen’s Bench ordered an employer to pay an executive level employee one year’s base salary, after it terminated his employment one year into a two-year,...more
I blogged recently about an ERISA case involving an executive severance plan where the executive sued claiming that his employment termination was effective before the first anniversary of a change in control, thereby...more
It is not uncommon for employers to have executive severance plans that pay substantial severance if an executive loses employment in connection with a change in control. In a recent federal district court decision, a former...more
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
In This Issue:
- Obama Administration Postpones Health Care Reporting and Penalties Until 2015
- Severance Agreements: What Are They Good For?
- Excerpt from 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
According to the Internal Revenue Service (IRS), severance is subject to Federal Insurance Contribution Act (FICA) tax and certain supplemental unemployment benefits are not....more
A land severance is the authorized separation of a portion of an existing parcel or lot of land to form a new lot or parcel of land. In most circumstances, the consent of the municipality in which the land lies will be...more
Several key changes to UK employment law are coming into force this summer.
New settlement agreements replace compromise agreements Compromise agreements are currently used by employers to document termination...more
Just weeks after settling its first ever Genetic Information Nondiscrimination Act (“GINA”) discrimination lawsuit and filing its first ever class action lawsuit under GINA, the Equal Employment Opportunity Commission (EEOC)...more
A familiar, if unsettling, trend the past four years has been layoffs. The calculus behind them is simple: companies need to cut costs to stay afloat amidst the weak economy, and reducing the size of their workforce is a...more
On the front-page of Tuesday’s Wall Street Journal, Weil, Gotshal & Manges announced that it laid off about 170 attorneys and support staff and slashed compensation for about 30 of its 300 partners. The firm ranked 13th in...more
A board’s decision as to whether, when and how to terminate the employment of a CEO and hire a successor is among the most critical decisions facing the board of any company — large or small, public or private, established or...more
The situation is a common one.
- Employer terminates the employment of an employee.
- Employer provides a severance agreement with its signature already affixed....more
Around the country, it appears companies are again planning large layoffs in cost-cutting moves. Although Research Triangle Park seems to be weathering the storm better than many areas, Net App and Quintiles are reducing...more
Two partners from a self-described law firm that specializes in the representation of whistleblowers have sent a letter to the SEC Commissioners complaining about the use of severance agreements to prevent employees from...more
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
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
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
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
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
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
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
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
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