EEOC Issues New Guidance On Severance Agreements

As our country struggles with difficult economic times, many employers have chosen to lay off at least some portion of their workforce. The unemployment rate in the U.S. is nearing 10% in recent months. As a result, the EEOC has seen a rise in both age discrimination charges and requests by employers for laid-off employees to sign waivers of discrimination claims in exchange for severance agreements. The EEOC has recently published a document titled "Understanding Waivers of Discrimination Claims in Employee Severance Agreements." While the publication is directed more toward employees than employers, it offers employers some helpful insight on the positions the EEOC takes towards waivers of discrimination claims included in severance agreements.