Total Articles: 6
Don't Hate Me Because I'm Brilliant: Part II
You may recall our previous post about a young lawyer who sued his former employer. The lawyer, Gregory Berry, had sent an email to the firm's partners, in which he stated, "it has become clear that I have as much experience and ability as an associate many years my senior, as much skill writing, and a superior legal mind to most I have met." Not surprisingly, Mr. Berry's arrogance was not well received, and he lost his job. He then sued his former employer, seeking over $75 million in damages.
Fifteen minutes may be adequate time to review employment separation agreement.
The 3d U.S. Circuit Court of Appeals has held that 15 minutes was a sufficient amount of time for the plaintiff, a public school teacher, to review a separation agreement and release negotiated in connection with her resignation. Gregory v. Derry Twp. Sch. Dist., 2011 WL 944424 (3d Cir., March 21, 2011)
EEOC Issues Guidance Regarding Waivers in Severance Agreements.
The EEOC recently issued guidance directed at helping employees understand waivers of discrimination claims included in employee severance agreements. Although the information provided in the guidance is not new, it is timely as U.S. employers continue to face layoff decisions in the current economic climate.
More Uncertainty Over Releases.
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.
Do-It-Yourself Releases? Not So Fast....
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.
Release of Claims In Separation and Severance Agreements.
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.
