Avoiding the Legal Landmines of Employee Separation and Release Agreements

Giving departing employees a separation agreement and release has become a standard business practice throughout the United States. Employers give them to their departing employees when the employees are being laid off or terminated, and sometimes even when the separation is voluntary. Other than serving to ease the employee’s transition, when done correctly separation agreements and releases are a powerful tool in minimizing legal risk. When not done correctly, however, they can create as many risks as they seek to avoid. This OnDemand Webinar will address avoiding the legal landmines of employee separation and release agreements. Specifically, we will examine what every separation agreement and release should include; what claims cannot be released; whether class and collective actions can be waived; what is valid consideration; how long employees have to consider the release; specific requirements for employees over 40 and in reduction in force scenarios; and the latest developments in the case law across the nation on the enforceability of separation agreements and releases and the inclusion of arbitration provisions in separation agreements and releases.

Authors

Agenda

Guiding Principles

• Must Be Written in Plain English
• Overbroad Releases May Create a Cause of Action Against Employers
• Timing Is Everything

Consideration

Severance Pay

What Claims Can and Can Not Be Released

• Overview
• Collective Actions
• Restrictive Covenants and Enforceability

Standard Provisions

• Date of Separation
• Identifying Released Parties
• Confidentiality
• Return of Company Property
• Nonadmission of Liability
• Nondisparagement
• Prevailing Party Responsible for Fees
• Statement of Noncoercion
• Severability
• Choice of Law
• Blue Pencil Provisions
• No Re-Employment If Applicable
• Nonadmission of Liability

Inclusion of Arbitration Agreements Post AT&T Mobility v. Concepcion

Special Requirements of OWBPA

• ADEA Specificity
• Restricted Scope
• Consideration
• Advice to Seek Counsel
• Pre-Signing Consideration Period
• Post-Signing Revocation Period
• Special Provisions for Group Programs

Questions and Answers

Additional Formats