Legal Question in Employment Law in California

Our company has recently downsized and has been told that we may need to downsize again. In an effort to retain employees, they have provided an Employee Retention Agreement. If we work through 12/31/16 we receive 2-weeks pay as a bonus. If at any time the company has to let you go (before or after that date), you would receive that bonus in addition to 2-weeks pay per year of service.

The company has used a general release which waives our right to the following; injury to the employee, LMRA, FLSA, The civil rights act, OSHA, American with disabilities, CA Fair employment and Housing, the CA constitution, the CA labor code, the CA business & professions code, the employee retirement income security act, FMLA, or any other federal, state or local civil or human rights law, rule, ordinance, policy, contract, tort or common law claim.

I thought these general releases were usually used for severance agreements, not a Retention Agreement whereby you are still going to be working for the company.

Can this be upheld? I didn't think you could sign away your labor code rights.


Asked on 1/15/16, 11:12 am

1 Answer from Attorneys

You can sign away any rights in California for things that have already happened. Otherwise it would be impossible to settle most claims, demands and lawsuits. Conversely, you cannot waive FUTURE claims at all, with a few exceptions for participation in hazardous activities. So they can make participation in the program conditioned on waiving any existing potential claims, even unknown claims if they word things properly, but not claims for future events.

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Answered on 1/15/16, 11:20 am


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