Settlement Waiver And Release Agreement for the United States

Settlement Waiver And Release Agreement Template for United States

A Settlement Waiver and Release Agreement is a legally binding document under U.S. law that formally resolves disputes between parties. It outlines the terms of settlement, including monetary compensation, and contains provisions where one party releases legal claims against another. The agreement typically includes specific requirements under federal and state laws, particularly when involving employment matters, and may need to comply with specific statutory requirements such as the Age Discrimination in Employment Act (ADEA) or state-specific release provisions.

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What is a Settlement Waiver And Release Agreement?

The Settlement Waiver And Release Agreement is utilized when parties wish to formally resolve disputes and prevent future litigation. This document is crucial in U.S. jurisdictions for documenting the terms of settlement, release of claims, and associated obligations. It must comply with federal and state laws, particularly in employment contexts where specific statutory requirements apply. The agreement typically includes consideration, release language, confidentiality provisions, and may require specific waiting periods or revocation rights depending on the nature of the claims being released.

What sections should be included in a Settlement Waiver And Release Agreement?

1. Parties: Identifies all parties to the agreement, including legal names and addresses

2. Background/Recitals: States the context and circumstances leading to the settlement

3. Definitions: Defines key terms used throughout the agreement

4. Settlement Terms: Details the settlement amount and payment terms

5. Release Provisions: Specifies the claims being released and scope of the release

6. Non-Admission of Liability: States that the settlement does not constitute admission of wrongdoing

7. Confidentiality: Terms regarding confidentiality of the settlement

8. Governing Law: Specifies the jurisdiction and applicable law

What sections are optional to include in a Settlement Waiver And Release Agreement?

1. Non-Disparagement: Mutual agreement not to make negative statements about each party (typically used in employment-related settlements)

2. Return of Property: Requirements for returning company property (used in employment-related settlements)

3. Tax Implications: Clarification of tax treatment of settlement payments (used when settlement involves significant monetary compensation)

4. Future Cooperation: Terms regarding ongoing cooperation between parties (used when future interaction may be necessary)

5. Medicare/Medicaid Provisions: Addresses Medicare/Medicaid liens and reporting requirements (used when settlement involves medical claims)

What schedules should be included in a Settlement Waiver And Release Agreement?

1. Payment Schedule: Detailed breakdown of payment terms if installment payments are involved

2. Claims List: Comprehensive list of claims being released

3. ADEA Disclosure: Required disclosures for age discrimination claims

4. Resignation Letter: Template or actual resignation letter for employment-related settlements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use
Industries

Age Discrimination in Employment Act (ADEA): Federal law that must be considered when drafting releases, particularly for employees over 40. Requires specific provisions including 21-day review period and 7-day revocation period.

Older Workers Benefit Protection Act (OWBPA): Amendment to ADEA that sets specific requirements for waivers of age discrimination claims, including knowing and voluntary standard.

Title VII of the Civil Rights Act: Federal law governing discrimination claims based on race, color, religion, sex, and national origin that may be subject to the release.

Americans with Disabilities Act (ADA): Federal law protecting rights of individuals with disabilities, which must be considered when drafting release language.

Fair Labor Standards Act (FLSA): Federal wage and hour law - courts generally scrutinize releases of FLSA claims carefully and may require Department of Labor or court approval.

Family and Medical Leave Act (FMLA): Federal law protecting employee leave rights that may be subject to release provisions.

State Labor Laws: Varying state-specific requirements for employment-related releases and waivers that must be incorporated into the agreement.

State Discrimination Laws: State-specific protections against discrimination that may provide additional or different requirements for valid releases.

Contract Law Principles: Fundamental requirements including consideration, capacity to contract, voluntary agreement, and clear/unambiguous terms.

Knowing and Voluntary Standard: Legal doctrine requiring that waivers must be knowing and voluntary to be enforceable, with specific factors courts consider.

Review Period Requirements: Mandatory timeframes for reviewing the agreement, including 21 days for individual agreements under ADEA and 45 days for group terminations.

Revocation Rights: Required 7-day revocation period for ADEA claims and any state-specific revocation requirements.

Legal Counsel Recommendation: Best practice to include language recommending that the releasing party consult with legal counsel before signing.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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