Make Sure Your Release Stands Up In Court

Downsizing a company’s workforce is a tough process and can also be quite expensive, both as a result of severance payments and wrongful dismissal lawsuits. One option for reducing or eliminating litigation costs is to make the payment of severance conditional on signing a release. Many believe that if an employee signs a release, an employer can rely on it to stop any legal proceedings. However, a release can be set aside if a court determines that it is “unconscionable”.

Rubin v. Home Depo...