The Waiver and Release Provision in a Separation Agreement
// Dallas, Texas, United States // Attorney Keith Clouse (Blog) // Keith Clouse
Departing executives usually sign separation agreements. A separation agreement details the parties’ post-employment obligations, such as the employer’s payment obligations and the executive’s obligations under a non-compete or other restrictive covenant. Most separation agreements also contain a “waiver and release” provision.
By agreeing to a waiver and release provision, the executive agrees that she will not sue her former employer for any then-existing claims. The release provision may contain a laundry list of the rights the executive waives, such as claims under various employment discrimination statutes. The release provision may also contain a catch-all phrase indicating that any and all other rights are also waived. The executive’s waiver and release must be made knowingly, voluntarily, and for consideration. Additional standards must be met if the executive is older than 40 and the waiver includes an age-related discrimination claim.
Many waiver and release provisions operate to release only the claims the executive might have against the employer. But, a waiver and release provision does not have to be one-sided; the departing executive can insist that the provision be reciprocal. An executive’s employment lawyer can draft a clause that binds the employer from suing the employee for certain claims.
To learn more about separation agreements, contact an employment lawyer in your area. This article is presented by the employment law attorneys at Clouse Dunn LLP. For inquiries, send an email to debra@clousedunn.com or call (214) 239-2705.
Contact Keith Clouse
KEITH A. CLOUSE
Clouse Dunn LLP
214.220.2722 214.220.3833 ( fax) keith@clousedunn.com
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