Employees May Still Sue Notwithstanding Severance Agreements With General Releases.
Many employment statutes or related regulations prohibit or limit the right of employees to waive statutory rights. For example, employees may not waive their rights to receive minimum wages or overtime pay under the Fair Labor Standards Act without court approval or Department of Labor supervision. Similarly, regulations issued under the Family Medical Leave Act provide that employees cannot waive their FMLA rights. Certain procedures must be followed for employers to obtain a valid waiver of potential age discrimination claims under the Age Discrimination in Employment Act. Employers may not be getting a valid waiver of such claims with do-it-yourself general releases.