NEWS & PRESS

Severance Agreement Covenant Not To Sue

The general release of rights does not therefore prevent an employee from asserting a right to compensation for the employee and the release of employees` rights to compensation in a severance pay agreement is not valid without the agreement of a workers` compensation judge. Similarly, the Securities and Exchange Commission is accusing provisions prohibiting employees from reporting securities law violations to the agency. Therefore, in order to prevent one of these agencies from undermining a severance pay agreement, a provision should be included stating that the agreement does not prohibit the worker from filing a complaint with a law enforcement agency or reporting breaches of the law, but that the worker waives financial recovery from the employer as a result of such a charge or complaint. . . .


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