Tag Archives: Separation Agreement

Employee Need Not Give Severance Back Before Moving Forward

An employee signs a separation agreement and receives severance pay. The employee then has second thoughts, alleges she was coerced into signing the agreement, and wants to pursue her discrimination claims in court. Must the employee give back the severance before suing? On August 13, 2018, in McClellan v. Midwest Machining, the Sixth U.S. Circuit … Continue reading this entry

EEOC Must Conciliate, But Still Few Answers Regarding Routine Separation Agreement Provisions

EEO Compliance
In February 2014, the EEOC sent waves through employer communities when it filed a lawsuit against a national retail pharmacy contending some of the company’s separation agreement provisions — which many considered “standard” and largely unremarkable — interfered with employee rights under Title VII and therefore violated the civil rights law. In October 2014, however, the … Continue reading this entry

Separately Assessing Separation Agreements

Separation or severance agreements —which typically provide a terminating employee with some kind of cash payment, temporary salary continuation, or other gratuitous benefit in exchange for a release of claims — have their usefulness in many circumstances. Employers often use them in connection with reductions in force, both as a means to cushion the blow … Continue reading this entry

Separation Agreements – How to Make Them Work

Employers often utilize separation agreements for departing employees. In the most common situations, employees who are separating receive certain benefits in return for their agreement to release the employer and related parties from all claims relating to their employment. While there are numerous ways to approach such agreements, there are certain issues employers are well … Continue reading this entry

Separation Agreement or No Separation Agreement?

When an employer terminates an employee, it has to decide whether to offer the employee separation pay (severance) in return for a release of claims. (See previous Legal News: Employment Law Weekly Update, May 29, 2012). Employers are generally not legally required to provide separation pay. Some employers choose never to offer separation pay, or … Continue reading this entry

Will Your Separation Agreement Pass Legal Scrutiny?

While separation agreements are one way that an employer can effectively manage its post-employment litigation risks, the validity of a poorly drafted agreement could be contested in court. A recent decision serves as a reminder of the importance of drafting separation agreements in a clear manner that will survive legal scrutiny.… Continue reading this entry