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Understanding Waivers of Discrimination Claims in Employee Severance Agreements
U.S. Equal Employment Opportunity Commission
[Guidance Overview] July 16, 2009 Excerpt: To minimize the risk of potential litigation, many employers offer departing employees money or benefits in exchange for a release (or 'waiver') of liability for all claims connected with the employment relationship, including discrimination claims under the civil rights laws enforced by the Equal Employment Opportunity Commission (EEOC) -- the Age Discrimination in Employment Act (ADEA), Title VII, the Americans with Disabilities Act (ADA), and the Equal Pay Act (EPA).[2] While it is common for senior-level executives to negotiate severance provisions when initially hired, other employees typically are offered severance agreements and asked to sign a waiver at the time of termination. When presented with a severance agreement, many employees wonder: Is this legal? Should I sign it? This document answers questions that you may have if you are offered a severance agreement in exchange for a waiver of your actual or potential discrimination claims. MORE >> |
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