There are many reasons why employers need to obtain releases of liability and of potential claims from their employees from time to time. For example, a full release from an employee is a typical quid pro quo employers expect when they offer a severance package or settle litigation. In exchange for the money, employees agree not to sue.
But in some circumstances in North Carolina, it may be difficult—or even impossible—to get a valid release from an employee.
Wage-and-hour claims and FMLA claims present possible traps for uninformed employers.
Releasing wage-and-hour claims
Employees can sometimes release claims they have against their employers under the federal Fair Labor Standards Act (FLSA), which primarily governs overtime pay and minimum wage payments.
Since 1945, the U.S. Supreme Court has consistently ruled that employers may not privately settle claims covered by the FLSA. The rulings reflect concerns th...(register to read more)
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