EEOC Suit Over CVS Separation Deal A Warning To Employers

Law360, New York (February 11, 2014, 8:22 PM EST) -- The U.S. Equal Employment Opportunity Commission's lawsuit targeting CVS Pharmacy Inc. over its separation agreement should serve as a warning to employers that the EEOC will scrutinize common severance agreement terms, even when the deal includes a disclaimer aimed at keeping the agency at bay, attorneys said Tuesday.

The EEOC lodged its pattern or practice lawsuit against CVS in Illinois federal court Friday, alleging that the company's separation agreement unlawfully interfered with employees' right to file discrimination charges or communicate with the EEOC. In a statement announcing the suit, the agency claimed CVS “conditioned the receipt of severance benefits for certain...

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