When employees are discharged, employers often enter into
agreements with such employees providing severance in exchange for
a global release of all potential claims and a promise not to sue
the company for anything related to their employment or discharge.
But employers must be careful and ensure their severance agreements
do not go too far.
Many employers have seen (and probably used) agreements that
require an employee to waive every claim, known or unknown, that
relates to the individual's employment, including claims of
discrimination, failure to provide leave or accommodate, breach of
contract, and even constitutional claims. Employers rely on these
agreements to give them peace of mind that a former employee cannot
sue the company after execution. But can these waivers have the
opposite effect?
