How Can We Get RIFfed Employees to Sign Releases?

In the case of a plant closing or loss of a management contract at a site where a majority of the employees will be RIFfed, what does the employer need to provide to the employees in order to require them to sign a release?

Rita Risser's response:

There are at least three laws that apply to this situation. Under the WARN Act, (29 USC 2102 et seq.) employers in your situation are required to give 60 days notice, or pay in lieu of notice. Since this is required by law, you cannot consider this "severance" pay as defined below.

Under the Older Workers Benefit Protection Act, employees over 40 must be notified they have the right to consult an attorney before signing any termination agreement, and be given 21 days to do that. Then the employee has 7 days after signing the agreement to revoke it.

If you get past those two, then common law requires that in order for any contract to be effective, there must be "independent consideration." In other words, in exchange for giving up the right to sue you, the employees must be given something in exchange. Typically, this is severance pay over and above the amount required to be paid under WARN.

If employees refuse to sign releases, you have a choice: offer more money, or take your chances that they will sue. You cannot require them to sign releases against their wills.

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