Employers who are thinking of offering severance agreements and waivers to departing employees should review the guidance offered by the Equal Employment Opportunity Commission aimed at helping the employee to decide whether to sign it.

To minimize the risk of potential litigation, many employers offer departing employees money or benefits in exchange for a release (or waiver) of liability for all claims connected with the employment relationship, including discrimination claims under the civil rights laws enforced by the EEOC, including the Age Discrimination in Employment Act, Title VII, the Americans with Disabilities Act , and the Equal Pay Act. The EEOC guidance answers questions that employees may have if they are offered a severance agreement in exchange for a waiver of their actual or potential discrimination claims; it also provides basic information about severance agreements, explains when a waiver is valid, and specifically addresses waivers of age discrimination claims that must comply with provisions of the Older Workers Benefit Protection Act. There is a sample of an agreement offered to a group of employees giving them the opportunity to resign in exchange for severance benefits. Note: HEC strongly advises that any waiver or severance agreement offered by the company should be drafted and reviewed by a competent labor and employment attorney.