In July 2009, the Equal Employment Opportunity Commission (the EEOC) issued new, employee-focused guidelines on severance agreements and waivers of discrimination claims. The guidelines set forth both requirements employers must satisfy and questions employees should ask when dealing with a termination of employment which includes a release of discrimination claims.

The EEOC took this action in response to the increase in layoffs, terminations and ‘early retirements’ resulting from the current economic situation. Because the focus of the guidelines is to make the process more accessible to employees, employers should revisit all ‘standard’ severance or termination agreements to make sure they comply with the various federal anti-discrimination statutes the EEOC administers. Careful attention should be paid to the language used, the deadlines imposed and the consideration offered for the agreement.

Don’t hesitate to call us to discuss a review of your current termination process or any specific questions or situations you may have.