Imagine your client pays a terminated worker two weeks’ severance in exchange for a release of claims. The release identifies the applicable state and federal employment statutes, has the employee’s initials on each page and contains an all-capped acknowledgment, above the employee’s signature, stating that the employee has not been coerced and understands the release to be a final and binding agreement. The employee subsequently files a lawsuit alleging employment discrimination. The case is dismissed, right?
Not necessarily, according to the Appellate Division’s recent decision in Carey v. NMC Global Corp. The case serves as a cautionary reminder to employers as to the need to use best practices in procuring releases from terminated employees.
The Circumstances
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