Have a lawyer draft any release that accompanies a severance payment. If the employee sues and the release was carefully written, the court will probably say it bars suing—and may require repaying severance money before the worker can even try challenging the release’s validity.
Recent case: Rander worked at Ann’s House of Nuts in Robersonville. When he was laid off, he accepted a one-time payment of $38,000. In exchange, he waived any claims he might have against the company.
Rander sued anyway, claiming he later discovered that the layoff was allegedly a cover for discrimination. But the court said since Rander had kept the money, he now couldn’t challenge the agreement or claim discrimination. (Harris v. Ann’s House of Nuts, No. 4:13-CV-0039, ED NC, 2013)
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/37063/draft-severance-agreements-to-prevent-future-lawsuits "
- Hell hath no fury like an English major scorned
- Making paycheck deductions in New York is dangerous business
- States look to copy San Fran's new paid-Leave law
- Recession 'how-to': Cutting exempt employee pay, hours
- It's legit: Use differences in location and responsibilities to justify variable pay scales