TAB Employment Law Handbook 

Chapter 18

 

RELEASES, GROUP TERMINATIONS, AND
REDUCTIONS-IN-FORCE

 

William C. Strock

Haynes and Boone, LLP

 

Summary

 

• A significant portion of employment litigation results from individual terminations, group terminations, and reductions-in-force.
• A release agreement waiving existing employment-related claims is a method an employer may use to avoid potential litigation and liability when terminating an employee or implementing a group termination or reduction-in-force.
• To be enforceable, a release must meet the following requirements:
  1. the employee must enter into the release agreement knowingly and voluntarily;
  2. the release must be in writing and supported by adequate consideration in addition to benefits or wages to which an employee is already entitled by law or established employment policies; and
  3. the release must describe the types of claims waived.
• A release may waive claims under Title VII of the Civil Rights Act, the Texas Commission on Human Rights Act, the Americans with Disabilities Act, Employee Retirement Income Security Act, and the Worker Adjustment and Retraining Notification Act, as well as other statutory employment laws if the above requirements are met.
• The Older Workers Benefit Protection Act provides specific requirements for waiving rights and claims under the ADEA.

(Group terminations or reductions-in-force may also require specific notices to employees and government agencies. See Chapters 13 and 19 for discussions of COBRA Insurance requirements and notice requirements under the Workers Adjustment and Retraining Notification Act.)