News & Analysis as of

Severance Agreements Termination Employer Liability Issues

Bradley Arant Boult Cummings LLP

Executive Contracts: What’s Common and What to Look For

For both employers and executives, having a well-drafted executive employment agreement is key to defining the relationship between an employer and one of its most important employees. The contract also sets the parties’...more

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

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

Three Key Considerations in Crafting Effective Multistate Separation Agreements

One of the main reasons for a separation agreement with an employee is to obtain an effective release of claims against the employer. However, ensuring release agreements are effective and enforceable is becoming increasingly...more

Dorsey & Whitney LLP

U.S. National Labor Relations Board Restricts Confidentiality and Non-Disparagement Terms for Separation and Release Agreements

Dorsey & Whitney LLP on

Employers have frequently included confidentiality and non-disparagement terms in their separation and release agreements. Confidentiality terms help ensure that employees won’t brag to coworkers about large payouts and...more

Harris Beach Murtha PLLC

NLRB Decision Limits Use of Non-Disparagement and Confidentiality Provisions

On February 21, 2023, the National Labor Relations Board (the “Board”) issued a decision that returns to previous precedent, holding that employers may not offer employees severance agreements that require employees to...more

WilmerHale

NLRB Restricts Use of Confidentiality and Non-Disparagement Provisions

WilmerHale on

On February 21, 2023, the National Labor Relations Board (the “Board”) issued a decision restricting the use of confidentiality and non-disparagement provisions in severance agreements with departing employees....more

Dorsey & Whitney LLP

Can employers require employees to accept confidentiality and non-disparagement obligations in exchange for severance pay?

Dorsey & Whitney LLP on

Employee reductions and terminations are an unfortunate result of economic downturns. Even during good economic times, many companies face the need to reduce their workforce or terminate the employment of individual...more

Miles & Stockbridge P.C.

NLRB Restricts Use of Confidentiality and Nondisparagement Clauses in Severance Agreements

The National Labor Relations Board last week sent employers into a frenzy over their severance agreements when it declared most standard nondisparagement and confidentiality provisions unlawful and held that even the mere...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

Epstein Becker & Green

International Challenges to Dismissing Employees During the COVID-19 Pandemic

Epstein Becker & Green on

Outside of the United States, terminating employees can be difficult even in “normal” times. The concept of “at-will” employment is uniquely American, and generally, employers in non-US jurisdictions only may terminate...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

Sheppard Mullin Richter & Hampton LLP

Considering Offering Severance Pay in Exchange for Certain Post-Employment Obligations? Think Again.

An employer violated employee’s labor rights by offering her a separation agreement that contained unlawful terms ruled a National Labor Relations Board (“NLRB”) administrative law judge (“ALJ”) in Baylor Univ. Med. Ctr.,...more

Baker Donelson

Ten Simple Steps to Avoid Employment Lawsuits

Baker Donelson on

You're striving to operate as efficiently as possible to increase your company's competitive advantage and, ultimately, its profit margin. But then someone in the company steps on a legal landmine and you spend $50,000 to win...more

Dentons

Can they Resign? Privacy Issues for Iowa Public Employers

Dentons on

In a post last week, we covered some of the implications of allowing an employee to resign rather than be terminated. House File 291, signed into law earlier this year by Governor Branstad greatly impacts public employers and...more

Mintz - Employment, Labor & Benefits...

Federal Court Allows Terminated Employee to Proceed with Age Discrimination Claim Despite Her Execution of a Release of Claims

A recent Colorado federal court decision serves as a good reminder to employers on how not to obtain a release of claims from a terminated employee. For starters, don’t tell the employee her job is being eliminated and then...more

Zelle  LLP

Retaliation: Realities and Myths

Zelle LLP on

Unlawful workplace retaliation can take several forms, and claims for retaliation arise under a number of different statutes and common law theories. Workers compensation statutes, for example, contain provisions that...more

Parker Poe Adams & Bernstein LLP

Federal Court Dismisses EEOC Lawsuit Challenging CVS Severance Agreement and Release

Employers can begin to breathe a sigh of relief after a federal judge last week dismissed a lawsuit brought by the Equal Employment Opportunity Commission against the CVS drug store chain. In the lawsuit, the EEOC took an...more

Cranfill Sumner LLP

How to Avoid Being the Next Casualty in the EEOC’s War on Employee Separation Agreements

Cranfill Sumner LLP on

In its current Strategic Enforcement Plan, the U. S. Equal Employment Opportunity Commission says that it is fed up with and will target employer “policies and practices that discourage or prohibit individuals from exercising...more

JD Supra Perspectives

Hiring & Firing: What Does a Successful Separation Agreement Between Employer & Employee Look Like?

JD Supra Perspectives on

In light of recent lawsuits by the EEOC against companies with overly broad or misleading severance agreements, we asked our contributors: What exactly is a successful separation agreement between employer and employee?...more

Mintz - Employment, Labor & Benefits...

Waivers of Age Discrimination Claims in Reduction in Force Cases Continue to Face Intense Scrutiny

A Federal court in Colorado recently permitted a former employee to advance an age discrimination claim despite his prior execution of a severance and release agreement after his employment ended in connection with a...more

Proskauer - Employee Benefits & Executive...

View From Proskauer: Investigating and Deciding Severance Benefits Claims

Plan administrators charged with administering Employee Retirement Income Security Act-governed severance plans are often confronted with the question of whether they should conduct an independent investigation into the...more

Stinson - Benefits Notes Blog

Bad Faith Termination Can Be Good ERISA Interference Claim

It is not uncommon for employers to have executive severance plans that pay substantial severance if an executive loses employment in connection with a change in control. In a recent federal district court decision, a former...more

Laner Muchin, Ltd.

Buying Peace?

Laner Muchin, Ltd. on

Every employment relationship ends at some point, and some end involuntarily and with hard feelings. Sometimes, hard feelings come from current employees as well. When these hard feelings exist, employment claims are...more

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