Tagged: Releases

EEOC Challenges Separation/Release Agreements

It is common practice for employers in the process of terminating employees to present separation agreements that offer the employees severance benefits in exchange for a general release of claims. On February 2, 2014, the Equal Employment Opportunity Commission (“EEOC” or “Commission”) filed suit in federal court in Chicago against the CVS drugstore chain, alleging that, since August 2011, CVS has engaged in a pattern or practice of discrimination in violation of Title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e-1 et seq.) by using separation agreements for their non-store employees that unlawfully interfere with the rights of these employees to file charges of discrimination with the Commission.

Can a USERRA Claim Be Released as Part of a Separation Agreement?

In the most recent issue of the New Jersey Labor & Employment Quarterly, Kelly Ann Bird and Zeenat Basrai analyze whether an employee can release claims under the Uniformed Services Employment and Reemployment Rights Act (“USERRA”) as part of a separation agreement. The scant caselaw construing USERRA has resulted in confusion over whether USERRA claims can be waived, and if so, what language a waiver must include to be enforceable. The article discusses practical steps employers can take to protect themselves from an employee bringing a USERRA claim after signing a separation or settlement agreement, such as drafting the waiver using clear and unambiguous language and giving the employee sufficient time to review and consider the agreement before signing it.