3.8 Releases of Claims and Severance Options

• Library: Employment Law in Virginia (Virginia CLE) (2020 Ed.)

3.8 RELEASES OF CLAIMS AND SEVERANCE OPTIONS

3.801 Release of Claims. In Adams v. Moore Business Forms, Inc., ¹³⁰ the court affirmed the trial court's award of summary judgment on the ground that releases of claims were in conformity with the requirements of the ADEA. In connection with closing a manufacturing plant, the defendant offered its employees who were losing their jobs a severance and benefits package in exchange for releases of any claims they might have in connection with the plant's closing. After receiving benefits, fourteen employees sued, claiming the releases were void for failure to conform with both requirements

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for release of claims under the ADEA and state regulations implementing the West Virginia Human Rights Act. The employees alleged that the releases were invalid because they were never informed of the ages...