News & Analysis as of

Employer Liability Issues › Employment Litigation › Severance Pay

Bressler, Amery & Ross, P.C.

Yes, an Arbitrator Can Exceed Their Powers in the Eleventh Circuit

Bressler, Amery & Ross, P.C. on

The reports of the death of Section 10 of the FAA may have been greatly exaggerated. Thursday, a majority of the Eleventh Circuit held in Nalco Co. LLC v. Bonday that an arbitration award was subject to vacatur under Section...more

Littler

Ontario, Canada Court Finds Employer Repudiated Employment Agreement When it Failed to Pay Employee’s Contractual Severance

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In Timmins v. Artisan Cells, 2025 CanLII 2387, Ontario’s Superior Court of Justice found, in an undefended claim, that the employers “by their correspondence and actions” repudiated the employee’s employment agreement when...more

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

Parker Poe Adams & Bernstein LLP

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

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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

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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

Faegre Drinker Biddle & Reath LLP

Reforms to Puerto Rican Labor Law Reinstate Employee-Friendly Measures

Faegre Drinker Biddle & Reath LLP on

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...

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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

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

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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

Seyfarth Shaw LLP

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

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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

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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

Seyfarth Shaw LLP on

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

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