Use severance agreements? Better check out EEOC’s latest move
Ready to rewrite your severance agreements? You may well have to, if the EEOC wins a recently filed lawsuit.
You know how these things go down: A company has to downsize, and offers departing employees some kind of financial package in exchange for the employee’s pledge not to divulge proprietary company information and, in most cases, file an employment lawsuit.
Usually, it’s a good deal for both sides — the employee gets a few weeks’ pay and the company can feel pretty confident that the firing won’t come back to bite it in the future.
But now the EEOC has filed suit against the pharmacy chain CVS, alleging that its severance agreement is so overly broad it interferes with employees’ rights to file complaints with the EEOC.
The scary part: CVS’s agreement contains the kind of boilerplate language found in virtually all companies’ severance pacts.
Five pages, single-spaced
In its complaint, the agency said CVS’ “five page single-spaced Separation Agreement … deters the filing of charges and interferes with the employees’ ability to communicate voluntarily” with federal agencies.
Here are six specifics cited in the EEOC complaint:
Cooperation. “In the event Employee receives a subpoena, deposition notice, interview request, or another inquiry, process or order relating to any civil, criminal or administrative investigation, suit, proceeding or other legal matter relating to [CVS] from any investigator, attorney, or any other third party, Employee agrees to promptly notify [CVS]’s General Counsel by telephone and in writing.”
Non-Disparagement – “Employee will not make any statements that disparage the business or reputation of [CVS], and/or any officer, director, or employee of [CVS].”
Non-Disclosure of Confidential Information. “Employee shall not disclose to any third party or use for himself or anyone else Confidential information without the prior written authorization of [CVS]’s Chief Human Resources Officer.” This information included “information concerning [CVS]’s personnel; the skills, abilities, and duties of [CVS] employees; wages and benefit structures; succession plans; and information concerning affirmative action plans or planning . . . .”
Resources
Post Your Resume to 65+ Job Sites
Resume Service
