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Report Link More Uncertainty Over Releases.Vedder Price - August 31, 2007 In past issues (January 2006, September 2006), we
have reported on litigation by individuals successfully
claming that releases they have signed are not legally enforceable. Typically, these claims are made after
the individual has received severance pay and benefi ts
from the employer in exchange for what the employer
believes is a fi nal and nonadversarial separation. Two
recent court decisions may give employers more cause
for concern. Report Link Recent Court Decisions Identify Concerns in Drafting Releases.Littler Mendelson, P.C. - July 19, 2007 Releases of liability are valuable risk-management tools for employers. The basic concept of a release is that the employer provides a sum of money or other consideration in exchange for a waiver of claims that the employee may have against the employer. Releases frequently are used to avoid litigation related to reductions-in-force (RIF), as a required element of severance programs, or to resolve potential claims with individual employees. Releases also are used to settle asserted claims against employers in administrative proceedings or in lawsuits. Courts, Congress, and state legislatures have increasingly restricted circumstances in which releases can be effective or placed specific obligations on employers related to releases. This Insight article addresses several recent legal developments that employers must consider when preparing releases for departing or former employees. Report Link The Reemergence Of Statute Of Limitations WaiversElarbee, Thompson, Sapp & Wilson, LLP. - June 20, 2007 In an ongoing effort to minimize the impact of employment litigation, employers have developed a variety of contract-based tools, including arbitration programs and jury waivers. One tool receiving renewed attention lately is the statute of limitations waiver; i.e., a contractual provision establishing a shortened limitations period in which an applicant, employee or former employee may initiate employment litigation against the employer. Such waivers enhance the manageability of employment litigation by establishing uniform limitations periods and, if not complied with, are dispositive of the dispute. Report Link Do-It-Yourself Releases? Not So Fast....Fisher & Phillips, LLP - February 12, 2007 Employers are increasingly using release agreements to avoid litigation with terminated employees. In fact, some employers are so comfortable with preparing their own releases that they fail to involve counsel to review each release they prepare. But the increased use of release agreements has spawned a new wave of litigation over the elements of an effective release. In some noteworthy cases, releases used by large, multi-national corporations have been declared to be invalid and unenforceable. So, think twice before you go the “do-it-yourself” route. Report Link Be careful with the language used in severance releases (pdf).Rothgerber Johnson & Lyons LLP - January 10, 2007 Many employers and their attorneys draft releases in connection with severance benefit payments. After all, one of the main considerations for payment of severance is to obtain a release and waiver of the right to sue from the employee. However, based on recent case law and EEOC litigation, employers must be very careful about the wording of these releases. Report Link Release of Claims In Separation and Severance Agreements.Fredrikson & Byron, P.A. - December 26, 2006 Employers have long offered severance benefits or “enhanced” severance payments in exchange for a release of all claims. This practice has always been considered a sound way to limit litigation, resolve possible disputes, and finalize the employment relationship. Report Link Employers Beware: Potential Pitfalls Abound With General Releases.Elarbee, Thompson, Sapp & Wilson, LLP. - October 25, 2006 Many employers require terminated employees to sign a general release of claims in exchange for receiving severance benefits from the company. Report Link EEOC Demands Departing Employees Can File A Charge of Discrimination And Get Severance.Helms Mulliss & Wicker - September 08, 2006 Twice in the last two months, the EEOC has prevailed in challenges to the terms of an employer’s severance agreement, signaling perhaps what could be a current “hot” issue for the EEOC. In both cases, the EEOC brought suit on behalf of former employees who were denied severance when their receipt of benefits was conditioned on an agreement not to pursue an EEOC charge. Report Link Federal Court Rules on Validity of Release in Exchange for Severance [PDF File].Kirkpatrick & Lockhart LLP - December 01, 2001 Discusses Melanson v. Browning Ferris Indust. (D. Mass 2001), in which the court addressed the validity of a release signed by a former employee now suing for sexual harassment.
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ArticlesFound: 9 ArticlesNO SUBTOPICSEmployment Law Seminars
UNDERSTANDING YOUR ETHICAL RESPONSIBILITIES AT WORK (AB 1234 COMPLIANCE)
Sacramento
May 13, 2008 Shaw Valenza LLPPreventing Wage/Hour Class Actions.Online
May 13, 2008 LittlerHOW TO CONDUCT EFFECTIVE INTERNAL INVESTIGATIONSSacramento
May 13, 2008 Shaw Valenza LLPHow to Stay Union FreeLas Vegas
2008-5-13 Jackson Lewis LLPConducting Effective Investigations of Employment Claims: Essential Skills for Internal InvestigatorsHouston
May 13, 2008 Littler2008 Public Sexual Harassment Training for supervisors and managers.Universal City
May 13, 2008 Ballard RosenbergSHRM Morris County Monthly Legal UpdateFlorham Park
2008-5-14 SHRM Morris County ChapterThe Connecticut Sexual and Other Harassment Education and Training in the Workplace ActHartford
2008-5-14 Jackson Lewis LLPDigital Dangers: Recent E-Discovery Developments and TrendsLas Vegas
May 14, 2008 LittlerHealth Care's New Labor and Privacy Law Frontiers: Defusing Tomorrow's Problems TodayDenver
May 14, 2008 Littler |
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