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.