Employers On Alert As EEOC Eyes More Severance Pacts

Law360, New York (May 6, 2014, 8:49 PM EDT) -- U.S. Equal Employment Opportunity Commission lawsuits against CVS Pharmacy Inc. and a private college suggest the agency is paying close attention to employee severance agreements and show that even common terms in the pacts may now draw fire, attorneys say.

The EEOC on Monday announced a lawsuit alleging that CollegeAmerica's separation agreements improperly interfered with employees' rights to file age-discrimination charges. The suit, which also includes retaliation claims, came just a few months after the EEOC sued CVS, alleging the retail pharmacy improperly conditioned employee severance pay on an "overly broad, misleading and unenforceable" separation agreement.

While the two cases have...

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