Compliance Stuff

  One of the main reasons for a separation agreement with an employee is to obtain an effective release of claims against the employer. However, ensuring release agreements are effective and enforceable is becoming increasingly challenging as more and more states have specific requirements and restrictions. Quick Hits Crafting effective multistate separation agreements can be challenging for employers amid an increasing number of state-specific requirements and restrictions. Employers may want to consider updating their template release agreements, confirming their agreements state sufficient and proper consideration for employees to release claims, and whether their separation agreements properly incorporate any desired restrictive covenants, arbitration agreements, or other agreements. While crafting effective separation agreements is a common issue for employers, they often rush to complete them in the face of a sudden separation or large-scale reduction in force (RIF). Prior pl...