Tag: Severance Agreements

Severance Payout: Lessons from Texas A&M’s $75 million mistake

Even if you’re not a sports fan, you’ve likely heard of this severance payout received by former A&M football coach, Jimbo Fisher. While you will never deal with this type of buy-out, the saga teaches us a great deal about hiring decisions, employment contracts, and, well, human nature. Jimbo’s the One! The following facts are […]

NLRB Narrows Permissible Terms in Severance Agreements

A recent National Labor Relations Board (NLRB) ruling determined that including certain nondisparagement and confidentiality provisions in severance agreements violates the National Labor Relations Act (NLRA). Facts McLaren Macomb Hospital permanently furloughed 11 employees and contemporaneously presented them each with a “Severance Agreement, Waiver and Release.” The agreement contained provisions that broadly prohibited them from […]

It’s Time to Review Severance Agreements in Light of NLRB Ruling

A recent decision by the National Labor Relations Board (NLRB) in McLaren Macomb has both union and non-union employers taking a second look at their severance agreements. In the case, the board decided an employer violated the National Labor Relations Act (NLRA) by offering furloughed employees severance agreements that contained confidentiality and nondisparagement provisions. What […]

NLRB Challenges Overly Broad Confidentiality and Nondisparagement Provisions in Severance Agreements

Recently, the National Labor Relations Board (NLRB) issued an important decision in which it ruled that employers that offer severance agreements to employees with broad nondisparagement or confidentiality provisions violate Section 8(a)(1) of the National Labor Relations Act (NLRA). What do employers need to know about this recent development in labor law? Background Section 7 of the […]

Q&A: A Few Questions about Severance Agreements

Are your severance agreements up to snuff? Here we will look at the answers to two questions about severance agreements. First, once an employee signs and takes the money, that’s the end of that, right? Second, should you always give severance pay to an employee that is getting fired or laid off? David B. Monks, […]

New Arizona law outlaws double-dipping unemployment benefits

by Dinita L. James A new Arizona law going into effect July 24 means employees who are let go with severance pay won’t be eligible for unemployment benefits right away. The law adds a new section to Arizona Revised Statutes § 23-621 to define severance pay, a term that was undefined in earlier legislation, which […]

How to write a strong termination letter

by Bradley T. Cave Writing a termination letter can be a daunting task, knowing that much can rise or fall on what the letter says. A few straightforward strategies can help you prepare a termination letter that manages the risks that accompany all termination decisions. What to leave in, what to leave out Obviously, a […]

EEOC Guidance on Waivers in Severance Agreements

by Susan W. Kline Recent economic conditions have caused a number of employers to reduce staff. In response to this trend, the Equal Employment Opportunity Commission (EEOC), the agency that enforces Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act (ADEA), and the Americans with Disabilities Act (ADA), has […]