News & Analysis as of

Severance Agreements Severance Pay Hiring & Firing

Littler

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

Littler on

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

Parker Poe Adams & Bernstein LLP

Noncompetes Included in Separation Agreements May Not Survive Legal Challenge

When preparing employee separation or severance agreements, we are occasionally asked by clients whether they can include a noncompetition restriction as part of the severance offer, even in situations where no noncompete was...more

Fisher Phillips

Las indemnizaciones por despido en Alemania: Mitos, Realidades y Acciones

Fisher Phillips on

Aunque muchos lo desconocen, los empleados en Alemania no tienen en automático un derecho a una indemnización por despido. Sin embargo, la ley ofrece oportunidades para obtenerla bajo ciertas condiciones. Este artículo...more

Fisher Phillips

Demystifying Severance in Germany: Key Strategies for Smooth Exits

Fisher Phillips on

Navigating severance in Germany can be challenging for U.S. employers, as it involves strict legal frameworks, works council negotiations, and potential financial risks. While severance pay isn't automatically guaranteed,...more

Benesch

Severance Agreement Confidentiality Provisions Under Fire, Employer Surveillance, and a Roadmap for Profanity in the Context of...

Benesch on

In early 2023, the National Labor Relations Board’s (NLRB or “Board”) decision in McLaren Macomb, 372 NLRB 58, revoked employers’ ability to require their employees to keep the terms of severance packages confidential and to...more

Poyner Spruill LLP

Legal Considerations When Downsizing Your Workforce

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With a weakening economy, many employers are now facing tough cost reduction decisions, which include possible separation of employees. Once it is decided to implement a reduction in force, the employer must make a further...more

Poyner Spruill LLP

Broad Confidentiality and Non-Disparagement Provisions in Release Agreements Subject to NLRB Scrutiny

Poyner Spruill LLP on

On February 21, the National Labor Relations Board (NLRB) issued an opinion with significant implications for confidentiality and non-disparagement provisions in employers’ severance and release agreements with departing...more

Skadden, Arps, Slate, Meagher & Flom LLP

Reductions in Force: Legal Do’s and Don’ts

Reductions in force (RIFs) are making headlines as companies trim their worker ranks in the face of a weakening economy. Employers must decide whether to implement voluntary or involuntary RIFs (or both); the considerations...more

Faegre Drinker Biddle & Reath LLP

Employers – Check Your Severance Arrangements Now!

If employees are required to provide proof of COVID-19 vaccination or a timely negative COVID-19 test, and/or wear a mask as a condition of employment (COVID-19 Policies), and an employee is terminated for violating a...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

Blank Rome LLP

Delaware Court Preserves McDonald’s Right to Seek Clawback of Ex-CEO’s Severance Benefits

Blank Rome LLP on

A recent decision by the Delaware Chancery Court in the clawback litigation between McDonald’s Corporation and its former CEO highlights the meaning and impact of a common contractual provision: the “integration clause.” Such...more

Fisher Phillips

So What Do We Do About PAGA? The Continued Viability Of Severance Agreements In The Wake Of Kim v. Reins

Fisher Phillips on

For decades, severance agreements have been a staple of the employment relationship, inhering to the benefit of employers and employees alike. Through their use, employers are able to obtain peace of mind against future...more

Miles & Stockbridge P.C.

Are Severance Benefits Subject to ERISA?

Definitely maybe. Severance benefits are subject to ERISA if they comprise a “plan, fund or program.” The Supreme Court held that there is a plan, fund or program for severance benefits if (1) payment requires an “ongoing...more

Littler

WPI State of the States: New Year, New Legislative Trends

Littler on

The year 2020 is already shaping up to be quite active on the employment law front, and a quarter of U.S. states have yet to convene their 2020 legislative sessions. In January, over 800 labor and employment-related bills,...more

Faegre Drinker Biddle & Reath LLP

Restructuring the Analysis: New Jersey Now Mandates Severance Pay for Mass Layoffs

On January 21, 2020, Governor Murphy signed Senate Bill 3170 into law, amending the Millville Dallas Airmotive Plant Job Loss Notification Act, New Jersey’s mini-WARN Act (NJ WARN Act), in several significant ways and further...more

Troutman Pepper Locke

Slate of N.J. Laws Require Severance Pay in Mass Layoffs and Increased Penalties for Worker Misclassification

Troutman Pepper Locke on

January 2020 was a busy month for New Jersey’s executive branch. Governor Phil Murphy signed into law at least five workplace-related bills, one of which revised the New Jersey mini-WARN Act, one granting state regulators...more

Fisher Phillips

New Jersey Approves Greater Protections For Employee Mass Layoffs

Fisher Phillips on

Thanks to a new law just signed into effect by Governor Phil Murphy, New Jersey employers will soon be required to provide severance pay and increased advance notice to most workers affected by a mass layoff or termination or...more

Seyfarth Shaw LLP

UPDATE: New NJ WARN Act Signed into Law "THOU SHALL NOT LEAVE"—A New Jersey Bill Awaiting Signature By the Governor Would...

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UPDATE: On January 21, 2020, the Governor of New Jersey signed Senate Bill 3170 into law, pushing state law far past the corresponding federal requirements of the WARN Act. Governor Phil Murphy issued an omnibus press release...more

Seyfarth Shaw LLP

“THOU SHALL NOT LEAVE”—A New Jersey Bill Awaiting Signature By the Governor Would Dramatically Re-Write Existing Mass Layoff Laws

Seyfarth Shaw LLP on

Seyfarth Synopsis: On Monday, January 13, 2020, the New Jersey state legislature passed Senate Bill 3170 which, if signed by the Governor, would result in sweeping changes to what was once a mass layoff notification statute...more

Epstein Becker & Green

Mandatory Severance on the Horizon Under Proposed Amendments to NJ Warn Act

A bill to amend the New Jersey Millville Dallas Airmotive Plant Loss Job Notification Act, also commonly referred to as the New Jersey WARN Act (“NJ WARN Act”), which the New Jersey Senate passed on December 16, 2019, if...more

McDermott Will & Emery

Severance and Deferred Compensation Considerations for Tax-Exempt Colleges and Universities

McDermott Will & Emery on

In-house counsel and human resources professionals at tax-exempt colleges and universities often face a variety of challenges when structuring, and determining obligations due under, severance arrangements. There are some key...more

Snell & Wilmer

Is Your Severance Program Release Enforceable?

Snell & Wilmer on

As most practitioners are aware, pursuant to the Older Worker Benefit Protection Act (“OWBPA”), in order for a release obtained in connection with a reduction-in-force (“RIF”) or severance program to be enforceable with...more

Littler

Puerto Rico Treasury Department Changes Tax Reporting on Act 80 Payments Made During Tax Year 2018

Littler on

On October 22, 2018, the Puerto Rico Department of the Treasury (the “PR Treasury”) issued Publication 18-03, which makes tax reporting and tax deadline changes for certain severance payments. ...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Dos and Don’ts for Drafting Severance Agreements

There are a number of important considerations for employers to keep in mind when drafting a severance agreement. Join Milwaukee shareholders Bud Bobber and Brian Radloff for a discussion of practical tips for drafting...more

Jackson Lewis P.C.

Court Rules That One-Time Voluntary Separation Program Is Not An ERISA Plan

Jackson Lewis P.C. on

Whether a one-time voluntary separation program should be treated as an ERISA-covered severance plan depends on whether the program requires an “ongoing administrative scheme” – a requirement first established by the Supreme...more

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