Employment waivers are also known as settlement and release agreements. Employers present these documents to departing employees when they have been terminated for various reasons, whether it was contentious or as part of a layoff. Once reviewed and signed, the employee cannot file a wrongful termination lawsuit. These waivers must meet the elements of a contract to be considered valid.
The most crucial element of a contract is “consideration.” If you expect your departing employee to sign a waiver, you must give them something of value in exchange. Emotions may be raw during this time, so working with an experienced wrongful termination attorney is best to help develop a fair deal. A Deerfield employment waivers lawyer could draft one and explain to your employee why signing it is beneficial to both parties.
One reason consideration is so important is that without offering an employee something valuable for their signature, they will invariably claim they were forced to sign. Waivers must be voluntary, and the employee must understand their relinquishing rights. Employers in Deerfield must permit them some time to review a waiver with an attorney of their choice to clear up any misunderstandings.
Specificity is key. The waiver should explain in detail the claims the employee is being asked to waive and what the employee will receive in return, which is usually a severance package.
However, if company policy entitles the employee to receive a severance package, then this will not suffice as consideration, because it would have been paid without signing a waiver. Our team at S.T. Legal Group could draft these useful documents or review one an employee has been asked to sign.
Under the Illinois Workplace Transparency Act of 2020, employees do not have to be 40 years or older to be informed about waiting periods. All employees must be afforded 21 calendar days to sign the employment waiver and seven days to revoke a signed waiver. Failure to include younger employees in this grace period violates state statutes and can cause a waiver to be nullified.
Employers know the federal and state laws that forbid them from discriminating against different protected groups when hiring employees. These rules also include firing people, and if an employee slated for dismissal is age 40 or older, there are rules to follow, as described in the Age Discrimination in Employment Act (ADEA), that address waivers. A release must:
Even though the ADEA governs age-related dismissals, state law has even tighter restrictions. A lawyer in Deerfield could further explain the regulations of an employment waiver in a consultation.
Employment waivers appear to be simple documents that help circumvent wrongful termination claims and costly litigation. However, they must be carefully worded and contain consideration on both sides to be fully legal. Withholding a severance package from an employee you are terminating is not legal if it is arbitrary, and offering one when they are already entitled to it is a faulty consideration. Waivers must also use specific language to ensure employees are not pressured to sign.
These settlement agreements depend on federal and state laws to be valid. To ensure the legality of the waiver you are using as an employer or the one you received to sign as an employee, consult a Deerfield employment waivers lawyer at S.T. Legal Group for experienced guidance.
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