EEOC To Continue Severance Pact Scrutiny Despite CVS Case

By Scott Flaherty (October 8, 2014, 7:48 PM EDT) -- A federal judge's dismissal of the U.S. Equal Employment Opportunity Commission's challenge of CVS Pharmacy Inc.'s separation agreement focused on procedural issues instead of the case's key questions, a ruling attorneys say won't dissuade the EEOC from its close scrutiny of employers' severance pacts.

After granting a CVS motion to dismiss at a Sept. 18 hearing, U.S. District Judge John W. Darrah followed up with a written opinion on Tuesday, saying the EEOC had not met its obligation before suing to try to resolve claims that CVS conditioned certain employees' severance pay on an overly broad and misleading separation agreement. The...

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