Can an employer force you to sign an agreement not to sue the company , when they give you a L-O-W package?
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Can an employer force you to sign an agreement not to sue the company , when they give you a L-O-W package?
Asked on June 11, 2009 under Employment Labor Law, Illinois
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 15 years ago | Contributor
When you sign any sort of a package, agreement, etc. with your employer, they can make a condition of it that you do not sue them for behavior FROM THAT DATE AND BACK. Sorry about "shouting" in capital letters, but it's an important point--you can waive, or give up, your rights to sue over anything that has happened up to the moment you sign, but not for behavior after that. In practice, that may not be a big deal, if you're not having continuing relations with the company, but it's still good to remember, in case they should slander or libel you, fail to pay you part of the package or anything else you're due, play hanky panky with a pension or 401(k), fail to honor any other obligations, including COBRA--if it happens after the date you signed the package, you can sue them.
And it is very common--almost universal--for companies to make an agreement to not sue part of any package.
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