ARTICLE · 04 FEBRUARY 2019

Please Release Me: New California Civil Code Section 1542 Release Language Effective January 1, 2019

Ogletree, Deakins, Nash, Smoak & Stewart

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California employers entering into severance or settlement agreements will want to be aware of the amendment to California Civil Code Section 1542.

United StatesGovernment, Public Sector

Christopher Olmsted

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Given the litigious environment in California, employers operating in the state are in great need of enforceable general release terms in severance and settlement agreements. California employers entering into severance or settlement agreements will want to be aware of the amendment to California Civil Code Section 1542.

Almost every severance or settlement agreement involving a California employee will include a Civil Code Section 1542 waiver. Typically, when entering into a severance agreement or settlement agreement, employers seek a release not only of the dispute at hand but also a general release of liability. Civil Code Section 1542 contains waivable language intended to prevent a releasor from inadvertently waiving unknown claims merely by signing a general release. Including a recitation of Civil Code Section 1542 and a waiver of its provisions in a severance or settlement agreement ensures that the releasing party consciously releases unknown claims that

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