Severance Agreements: Employer Beware
In settling an existing charge of discrimination, administrative complaint or lawsuit, employers, upon advice of counsel, routinely obtain a release of all claims from the employee. This includes releasing any claims already asserted and any other potential claims the employee could assert in the future. Employers also utilize severance agreements as a means of minimizing litigation by obtaining a release of all claims from a departing employee when offering severance to the employee.