Severance Agreements: Practical Considerations to Minimize Business Disruption Elizabeth A. Coonan Ann Holden Kendell BrownWinick 666 Grand Avenue, Suite.

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Presentation transcript:

Severance Agreements: Practical Considerations to Minimize Business Disruption Elizabeth A. Coonan Ann Holden Kendell BrownWinick 666 Grand Avenue, Suite 2000 Des Moines, IA Telephone:

Why do we use Separation Agreements? Minimize Liability and Risk Serve Business Objectives Secure Company Assets

Applicable State Laws IOWA LAWS Iowa Workers Compensation (Chapter 85) Iowa Occupational Safety and Health (Chapter 88) Iowa Wage Payment Collection Act (Chapter 91A)

Applicable State Laws Iowa Code Section 91A.5A (Veterans Day leave) Personnel Information (Chapter 91B) Iowa Civil Rights Act (Chapter 216) Iowa Wage Discrimination in Employment Act Iowa Code Section 607A.45 (jury duty)

Applicable State Laws Iowa Code Section (voting) Iowa Worker Adjustment and Retraining Notification Act (Iowa WARN) Private Sector Drug-Free Workplaces (Chapter 730.5) Volunteer Emergency Services Providers Job Protection Act (Section 100B.14)

Applicable Federal Laws Americans with Disabilities Act (ADA) Age Discrimination in Employment Act (ADEA) Consolidated Omnibus Budget Reconciliation Act (COBRA) Consumer Credit Protection Act (CPCA) - garnishment Equal Pay Act (EPA)

Applicable Federal Laws Employee Retirement Income Security Act (ERISA) Fair Labor Standards Act (FLSA) Family and Medical Leave Act (FMLA) Genetic Information Non-Discrimination Act (GINA) Health Insurance Portability and Accountability Act (HIPAA)

Applicable Federal Laws Immigration Reform and Control Act (IRCA) Lilly Ledbetter Fair Pay Act National Labor Relations Act (NLRA) Occupational Safety and Health Act (OSHA) Older Workers Benefit Protection Act

Applicable Federal Laws Patient Protection and Affordable Care Act (PPACA) Title VII The Pregnancy Discrimination Act of U.S.C. §1981 (Section 1981) - race

Applicable Federal Laws Worker Adjustment and Retraining Notification Act (WARN) Uniformed Services Employment and Reemployment Rights Act (USERRA)

What a Separation Agreement Can Do: Smooth Transitions Reduce Liability Preserve Employee Obligations (Confidentiality, Trade Secrets, etc.) Secure Continuing Cooperation

What a Separation Agreement Cannot Do: Terminate Equal Employment Opportunity Commission (EEOC) or Iowa Civil Rights Commission Investigations Terminate an Employee’s Right to File: o Unemployment Claims o Workers’ Compensation Claims o Wage Claims o ERISA Claims

Consideration Must offer something of value to which the employee is not already entitled Balance protections required by the company with the restrictions imposed upon the employee Address any existing contractual obligations

Structuring the Separation Package General Release OWBPA/ADEA Release Affirmative Acknowledgements Neutral References/ Agreed-upon Statement Non-Interference/Non-Disparagement

Structuring the Separation Package Permanent Employment Separation/No Re-Application Payout Structure – Salary Replacement, Lump Sum Benefit Continuation Outplacement Remedies for Breach Jurisdiction, Venue and Law

Negotiating with the Employee Identify main point of contact Counteroffers Extensions of time Expiration

Practical Issues Involving Transitions Timing Messaging/Communications Managing Work Flow Issues Updating Records/Contacts Unemployment Employee Assistance Program

Website: Toll Free Phone Number: OFFICE LOCATIONS: 666 Grand Avenue, Suite 2000 Des Moines, Iowa Telephone: (515) Facsimile: (515) Franklin Place Pella, Iowa Telephone: (641) Facsimile: (641) DISCLAIMER: No oral or written statement made by BrownWinick attorneys should be interpreted by the recipient as suggesting a need to obtain legal counsel from BrownWinick or any other firm, nor as suggesting a need to take legal action. Do not attempt to solve individual problems upon the basis of general information provided by any BrownWinick attorney, as slight changes in fact situations may cause a material change in legal result.