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 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 (
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)