News & Analysis as of

Severance Agreements Contract Terms

Kelley Drye & Warren LLP

The New York State Legislative Push for Minimum Review Periods in Severance Agreements

Employers are already familiar with the age-related requirements of federal law applicable to an employee’s release of claims if the employee is 40 or older: they have up to 21 days to consider the release, and seven...more

Mintz

Restrictive Covenants in Private Equity Transactions

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Restrictive covenants are unquestionably a significant deal consideration in M&A transactions. In the private equity context, a buyer is focused on restrictive covenants to protect its investment by binding the sellers and...more

Farella Braun + Martel LLP

New York Legislature Looking to Expand Restrictions on Severance Offers

The New York legislature may soon pass the “No Severance Ultimatums Act,” which would require all employment severance agreements except those negotiated through collective bargaining to include (1) a 21-business day review...more

Ervin Cohen & Jessup LLP

To Sever or Not to Sever, That is the Question For Courts Reviewing Employment Arbitration Agreements for Enforceability

Less than a year ago, the California Supreme Court in Ramirez v. Charter Communications, Inc. opined, in the context of employment arbitration agreements, that there is no bright line rule that requires a court to refuse...more

Epstein Becker & Green

No Ultimatums: New York State Lawmakers Contemplate New Mandatory Provisions for Severance Agreements

On March 4, 2025, the New York Senate passed Senate Bill S372 (the “No Severance Ultimatums Act” or “S372”)....more

ArentFox Schiff

How Policy Changes at the NLRB Could Affect Severance and Noncompete Agreements

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On February 14, the new general counsel of the National Labor Relations Board (NLRB), William Cowen, rescinded more than 25 previously issued policy memoranda....more

Troutman Pepper Locke

New York Senate Passes First-in-the-Nation Bill Requiring Mandatory Review and Revocation Period for All Severance Agreements

Troutman Pepper Locke on

Under current law, New York employers are statutorily required to provide a 21-day review and seven-day revocation periods in employment separation agreements in two scenarios: (1) if the employee is 40 or older and the...more

Littler

Ontario, Canada Court Finds Employer Repudiated Employment Agreement When it Failed to Pay Employee’s Contractual Severance

Littler on

In Timmins v. Artisan Cells, 2025 CanLII 2387, Ontario’s Superior Court of Justice found, in an undefended claim, that the employers “by their correspondence and actions” repudiated the employee’s employment agreement when...more

Parker Poe Adams & Bernstein LLP

Noncompetes Included in Separation Agreements May Not Survive Legal Challenge

When preparing employee separation or severance agreements, we are occasionally asked by clients whether they can include a noncompetition restriction as part of the severance offer, even in situations where no noncompete was...more

BakerHostetler

Adding Injury to Insult: The NLRB’S General Counsel Lays Out Expanded Remedies For Unlawful Noncompete and Stay-or-Pay Agreements

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We previously reported on a May 2023 memorandum issued by the general counsel of the National Labor Relations Board (NLRB or Board), Jennifer A. Abruzzo, stating her view that “the proffer, maintenance, and enforcement” of...more

BakerHostetler

Sixth Circuit Bypasses NLRB’s McLaren Macomb Confidentiality and Non-Disparagement Provisions Holding, Fostering Uncertainty About...

BakerHostetler on

On September 19, the Sixth Circuit Court of Appeals issued a decision enforcing the National Labor Relations Board (NLRB or Board) February 2023 McLaren Macomb decision. In doing so, the Sixth Circuit declined to comment on...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Three Key Considerations in Crafting Effective Multistate Separation Agreements

One of the main reasons for a separation agreement with an employee is to obtain an effective release of claims against the employer. However, ensuring release agreements are effective and enforceable is becoming increasingly...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Laid-Off Workers Gain Influence on Social Media, Raising Concerns for Employers

Waves of mass layoffs during the past two years have generated a new trend: layoff influencers who use social media to vent feelings, get assistance with a job search, and find community with other laid-off workers. This...more

Frantz Ward LLP

Not-So-Friendly Reminders from the NLRB to Review Your Severance Agreements and Employee Handbooks

Frantz Ward LLP on

Recent decisions and settlements from the National Labor Relations Board should serve as a not-so-friendly reminder to ensure that your severance agreements and employee handbooks do not run afoul of the National Labor...more

Venable LLP

The List of States Regulating Non-Disclosure Provisions Continues to Grow

Venable LLP on

From the day the #MeToo movement went viral on social media more than seven years ago, it has sparked critical discussions about sexual harassment, assault, and abuse in all corners of industries, communities, and cultures....more

Benesch

Severance Agreement Confidentiality Provisions Under Fire, Employer Surveillance, and a Roadmap for Profanity in the Context of...

Benesch on

In early 2023, the National Labor Relations Board’s (NLRB or “Board”) decision in McLaren Macomb, 372 NLRB 58, revoked employers’ ability to require their employees to keep the terms of severance packages confidential and to...more

BakerHostetler

Employers Beware: Broad Confidentiality and Severance Clauses May Violate Whistleblower Protection Laws

BakerHostetler on

Employers should check their confidentiality and severance agreements for a common oversight that, for some, is becoming a costly error. Recent enforcement activity by the Securities and Exchange Commission (SEC) of Rule...more

Polsinelli

New Year, New Severance and Settlement Agreement Rules for New York

Polsinelli on

With the New Year in full swing, it is important for New York employers to be aware of recent changes to New York’s statutes relating to severance agreements. On November 17, 2023, New York enacted S4516, which provides...more

Womble Bond Dickinson

Recent Whistleblower Enforcement Actions Highlight SEC Focus On Employee Agreements

Womble Bond Dickinson on

In September, the U.S. Securities and Exchange Commission (the “SEC”) announced the settlement of three enforcement actions for violations of SEC whistleblower protection laws. In the actions, the SEC asserted that the...more

Sands Anderson PC

NLRB’s McLaren Macomb Decision and the Future of Employee Severance Agreements

Sands Anderson PC on

Severance agreements have long been utilized as a valuable tool for providing employers with protections from the post-employment conduct or claims of former employees. Severance agreements often include a wide range of...more

ArentFox Schiff

DC Circuit Rules Non-Disparagement “Directives” to Executives in Separation Agreements Could Bind Employers

ArentFox Schiff on

In a case that should make employers rethink how they draft non-disparagement clauses, a panel of the DC Circuit ruled in a split decision that a provision that required a non-profit simply to “direct” certain executives not...more

Stoel Rives - World of Employment

NLRB Returns to Longstanding Position Limiting Use of Confidentiality, Non-Disclosure, and Non-Disparagement Clauses in Employee...

The General Counsel of the National Labor Relations Board (NLRB), Jennifer A. Abruzzo, issued guidance on March 22, 2023, about the NLRB’s McLaren Macomb, 372 NLRB No. 58, decision from February 21, 2023, which reinstated a...more

Husch Blackwell LLP

The Labor Law Insider: Non-Disclosure and Non-Disparagement Agreements under Fire: A New Board Decision and a New General Counsel...

Husch Blackwell LLP on

In the second installment of this two-part Labor Law Insider podcast, attorneys Terry Potter and Tom O’Day join host Tom Godar to discuss the impact of the National Labor Relations Board decision of McLaren Macomb, as well as...more

Verrill

What’s Next: How to Respond to the National Labor Relations Board (NLRB) Current Policies Surrounding Confidentiality and...

Verrill on

The Background: McLaren Macomb - On February 21, 2023, the National Labor Relations Board (“the Board”) decided McLaren Macomb, a case where a hospital offered severance pay to eleven permanently furloughed employees in...more

Keating Muething & Klekamp PLL

NLRB Issues Guidance on the Recent Mclauren Macomb Decision

On February 21, 2023, the National Labor Relations Board (NRLB or the “Board”) issued a decision in Mclauren Macomb, 372 NLRB No. 58 (2023), holding that severance agreements that contain broad confidentiality and/or...more

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