The Agreement Not To Sue Employer is commonly used in employment separations, dispute resolutions, or settlement negotiations within the United States. This document serves as a risk management tool for employers while providing compensation to employees in exchange for their agreement not to pursue legal claims. It must be carefully drafted to comply with both federal and state employment laws, including provisions for adequate consideration, clear language regarding waived rights, and specific requirements for age-related claims under the ADEA. The agreement typically includes details about the claims being released, consideration provided, and any ongoing obligations of both parties.
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1. Parties: Identifies the employer and employee entering into the agreement
2. Background: Explains the context and circumstances leading to the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Scope of Release: Details specific claims being waived and references to applicable federal and state laws
5. Consideration: Specifies what the employee receives in exchange for the release
6. Non-Admission of Liability: States that the agreement does not constitute admission of wrongdoing by either party
7. Governing Law: Specifies which state/jurisdiction's laws govern the agreement
1. Confidentiality: Terms regarding confidentiality of the agreement and its contents
2. Non-Disparagement: Provisions preventing parties from making negative statements about each other
3. Return of Company Property: Requirements and timeline for returning any company property or assets
4. ADEA Compliance: Special provisions required for employees over 40 under the Age Discrimination in Employment Act
5. Revocation Period: Clause specifying the period during which the agreement can be revoked (typically required for age-related claims)
1. Schedule A - Detailed List of Released Claims: Comprehensive enumeration of specific claims being waived under federal and state laws
2. Schedule B - Consideration Details: Detailed breakdown of payment or other consideration being provided to the employee
3. Schedule C - Company Property Inventory: Itemized list of company property to be returned by the employee
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