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When It's About More Than Money: What's Enforceable In Settlement Agreements

By Debra L. Raskin and Tara S. Crean
May 01, 2004

From time to time, even the best employers need to downsize staff. The terms of an employee's severance are usually memorialized in an agreement, pursuant to which the employee, in consideration for a payment of a certain amount, waives the right to litigate claims. Although that amount is often the primary bone of contention, unfortunately it is not the only one. This article outlines the other terms commonly appearing in agreements settling claims arising out of employment and its termination, and the often-conflicting case law on the enforceability of such terms.

What Makes a Release of Claims Legally Valid

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