FindLaw | Find a Lawyer. Find Answers.
Are you a legal Professional?
ABA Family Legal Guide
Law and the Workplace
Leaving a Job
Being Fired
An employer offers severance pay only if the employee agrees to sign a waiver of rights to sue the company. What is the legal effect of signing such a waiver?
Generally, a knowing and voluntary waiver is enforceable and would prevent employees from being able to sue the employer for anything that occurred while they were employed. Whether a waiver is knowing and voluntary depends on the circumstances. The courts usually consider several factors in deciding if it is knowing and voluntary.
The Age Discrimination in Employment Act (ADEA) contains a list of specific requirements that must be met in order for a waiver of employee rights under the ADEA to be effective. Included among those requirements is that the employee be advised in writing to consult with a lawyer before signing the waiver and that the employee be given at least twenty-one days to consider the waiver before signing.
The courts will not enforce a waiver of any claims that arise under the Fair Labor Standards Act (FLSA).
Copyright © 2004 American Bar Association