Severance Agreements Under Attack by the EEOC
Two recent lawsuits filed by the Equal Employment Opportunity Commission (EEOC) underscore the federal agency’s intent to continue, and even expand, its attack on severance agreements. Generally, a severance agreement offers a departing employee money or other benefits in exchange for a release of any and all claims. Employers may offer a severance agreement in a variety of circumstances, including where there are no anticipated claims against the company. Moreover, public policy favors the voluntary settlement of employment disputes.