EEOC Separation Agreements: What You Need to Know
Employers may offer an employee a separation agreement for various reasons, including termination, retirement, or resignation. These agreements typically outline the terms of departure, such as severance pay, benefits, and the release of any legal claims.
If you are an employer, it is essential to understand the implications of offering an EEOC (Equal Employment Opportunity Commission) separation agreement. The EEOC enforces federal laws that prohibit discrimination in employment based on race, color, religion, sex, national origin, age, disability, and genetic information. Therefore, any release of legal claims must comply with these laws.
Here are some key factors to consider when offering an EEOC separation agreement:
1. Timing
Under the Age Discrimination in Employment Act (ADEA), employees over 40 years old must be given at least 21 days to review an EEOC separation agreement and seven days to revoke it after signing. Failure to abide by these requirements can result in the agreement being unenforceable.
2. Contents
An EEOC separation agreement must be written in plain language and clearly identify the legal claims being released. It cannot waive an employee`s right to file a charge or participate in an investigation or cooperate with the EEOC. Additionally, the agreement cannot waive the employee`s right to future protection under anti-discrimination laws.
3. Consideration
In exchange for signing an EEOC separation agreement, employees must receive something of value, such as severance pay or extended benefits. The amount of consideration must be reasonable and not undermine the purpose of anti-discrimination laws.
4. Employee Rights
Employees must understand that they have the right to consult an attorney before signing an EEOC separation agreement. Employers cannot pressure or intimidate employees into signing or enforce agreements that are illegal or against public policy.
5. Additional Requirements
Depending on the state, additional requirements may apply to EEOC separation agreements. For instance, California has specific regulations regarding releases of claims arising from employment termination.
In summary, EEOC separation agreements can be a useful tool for employers to manage exits. However, it is crucial to comply with federal and state laws to ensure that the agreements are legal and enforceable. Consult with legal counsel and HR professionals to avoid potential legal risks and protect your business reputation.