News & Analysis as of

Severance Pay Employment Litigation

Stikeman Elliott LLP

The reasonable person test—When constructive dismissal becomes employee’s failure to minimize damage

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On February 1, 2024, the Superior Court of Quebec decided that a senior executive with 35 years of service who had been constructively dismissed was not entitled to severance pay because he had declined the new position the...more

Kaufman & Canoles

ESOPs & Employee Benefits Q3 2023 Client Update

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As summer turns to fall, the employee benefits landscape continues to evolve. A few of our thoughts on recent updates are below. Also be on the lookout over the coming weeks for a separate guide to SECURE 2.0 provisions that...more

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

Employee Benefits and Rights in Puerto Rico: What to Know Now That Law 41-2022 Has Been Declared Null and Void

On March 3, 2023, the U.S. District Court for the District of Puerto Rico issued a decision declaring Law 41-2022 null and void, effectively reinstating the prior state of many of Puerto Rico’s employment statutory...more

Parker Poe Adams & Bernstein LLP

Second Circuit Rejects Employee's Claim That Medical Condition Prevented Ability to Release Claims

When an employer presents a separation agreement and release to an employee out of work for medical reasons, questions sometimes arise regarding that person’s ability to understand and competently execute the document. If an...more

Littler

Alberta, Canada: Court Uses Oppression Remedy to Hold Corporate Directors Personally Liable for Wrongful Dismissal Damages

Littler on

In Wisser v CEM International Management Consultants Ltd, 2022 ABQB 414 (CEM International), the court used the oppression remedy to hold directors of a corporation personally liable for damages for wrongful dismissal after...more

Foley & Lardner LLP

What Should Employers Consider If Conducting Layoffs?

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It is a badly-kept secret that the U.S. economy is facing challenges – inflation, increased interest rates, increased labor costs, decreased business growth, etc. One option for businesses during an economic downturn is...more

Faegre Drinker Biddle & Reath LLP

Reforms to Puerto Rican Labor Law Reinstate Employee-Friendly Measures

On June 20, 2022, Puerto Rico’s governor signed into law Act No. 41-2022 (“the Act”). The Act rolls back certain changes brought about by the Labor Transformation and Flexibility Act (“LTFA”). The LTFA was enacted in 2017 in...more

Stikeman Elliott LLP

The High Cost of Reinstatement for Québec Employers

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On January 20, 2022, the Administrative Labour Tribunal (the “Tribunal”) awarded an employee dismissed without cause, termination pay in the amount of $716,970.71 as well as an indemnity for lost wages, loss of pension...more

Littler

Alberta, Canada: Arbitrator Decides COVID-19 Pandemic is Cataclysmic Event that Did Not Trigger Entitlement to Severance Under...

Littler on

In United Utility Workers’ Association of Canada v Dataco Utility Services Ltd., 2022 CanLII 13414 (AB GAA), Arbitrator John Moreau, Q.C., dismissed 11 grievances filed on behalf of 11 service technicians (Grievors) of Dataco...more

Miller Canfield

Global Payroll Now Applies to Severance Pay Calculations in Ontario

Miller Canfield on

The world is shrinking, and the cost to multinational employers may have grown because of it. In Hawkes v. Max Aicher (North America) Ltd., 2021 ONSC 4290 ("Hawkes"), Mr. Hawkes was originally denied severance pay...more

Fisher Phillips

Employers with Limited Canadian Presence May Be Required to Fulfill Significant Severance Obligations Thanks to Recent Court...

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A Divisional Court in Ontario, Canada recently issued a ruling that could have significant potential extra-jurisdictional consequences for U.S. employers with even a single employee based in Canada. The court’s June 15...more

Littler

Ontario, Canada Court Decides Employer’s Liability for Severance Depends on Size of its Global Payroll

Littler on

The recent Ontario decision, Hawkes v. Max Aicher (North America) Limited, 2021 ONSC 4290 (Max Aicher), establishes that global employment is factored into the calculation of an employer’s payroll under s. 64 of the...more

Fisher Phillips

So What Do We Do About PAGA? The Continued Viability Of Severance Agreements In The Wake Of Kim v. Reins

Fisher Phillips on

For decades, severance agreements have been a staple of the employment relationship, inhering to the benefit of employers and employees alike. Through their use, employers are able to obtain peace of mind against future...more

Seyfarth Shaw LLP

Having Your Cake And Eating It Too: Sixth Circuit Rules That Employees Need Not Return Severance Pay Before Suing

Seyfarth Shaw LLP on

Seyfarth Synopsis: In a recent decision, the U.S. Court of Appeals for the Sixth Circuit ruled that former employees need not return severance pay before filing a lawsuit against an employer, when the employee alleges the...more

Akerman LLP - HR Defense

Conditioning Severance on Post Employment Obligations: Tricky Business

Employers often want to be sure that departing employees won’t disclose confidential business information or make disparaging remarks about the company, and therefore include such obligations in severance agreements. But...more

Carlton Fields

Arbitrator’s Decision Not Based On Manifest Disregard Of The Law, But Challenge To That Decision Was Not So Meritless As To...

Carlton Fields on

Jonathan Kessler brought a claim in arbitration against his former employer, Kent Building Services, after he was fired from his job as Kent’s president, asserting that he had not been fired for cause and was thus owed...more

Seyfarth Shaw LLP

Central District Of California Finds No ERISA Preemption Where Determination Of Benefits At Termination Is Non-Discretionary

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Seyfarth Synopsis: Claims for benefits at termination may proceed as a breach of contract claim in state court, and avoid ERISA preemption, where the calculations are individualized, straightforward and do not implicate an...more

Hogan Lovells

District Court Case Highlights Advantages of ERISA Severance Plans

Hogan Lovells on

Specialists have long touted certain significant advantages to employers that come along with maintaining ERISA severance plans, and a recent district court case highlights some of these advantages....more

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