Q. I am terminating employees in three states. Is it OK for me to use my standard separation agreement in all three states?
A. While you are on the right track by using separation agreements to obtain releases of legal claims, take care to ensure the release of claims is actually enforceable.
While every state allows employees to release legal claims in exchange for a payment or other consideration, many states have specific requirements for effective releases. Federal law also requires different release provisions depending upon the age and number of employees involved.
For example, to release claims under the Minnesota Human Rights Act, in most situations the agreement must provide a 15-day period in which the employee can rescind the release of those claims.
Among other requirements, federal law requires that workers over age 40 be given 21 days to consider whether to release age discrimination claims.
All of these requirements can change over time because of court decisions or legislative acts.
Because of these variations, using a standard form agreement across multiple states can create problems. Each agreement should be tailored to the state in which the employee works and the age of the employee(s) involved.
Check your separation agreement with an attorney who knows the laws in the states you are doing business in.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/12883/do-i-need-a-state-specific-separation-agreement "