Signing a release agreement does not always mean you lose the right to file a wrongful termination claim. While these agreements are designed to prevent future lawsuits, there are exceptions, particularly when an agreement is signed under duress, fraud, or does not cover nonwaivable rights.
What Is a Release Agreement?
A release agreement is a contract between an employer and an employee, typically signed during or after termination. The employee agrees to waive any potential legal claims they might have against the employer in exchange for a severance package, benefits, or other compensation.
Release agreements are designed to protect employers from future lawsuits, often relating to wrongful termination, discrimination, retaliation, and harassment, among others. However, they must meet specific legal standards to be enforceable. Contact a Los Angeles employment attorney to discuss your case today.
When Is a Release Agreement Enforceable?
For a release agreement to be enforceable in California, it must be:
Clear and Unambiguous
The terms of the agreement must be clearly stated and easily understood by the employee. Legal jargon or confusing language may lead to the agreement being deemed invalid.
Voluntary
The employee must sign the release voluntarily, without coercion or undue pressure from the employer.
Supported by Consideration
There must be some form of compensation or benefit provided to the employee in exchange for signing the release. This is often severance pay, but it can also include benefits, stock options, or other forms of compensation.
When Can You Still File a Wrongful Termination Claim after Signing a Release Agreement?
There are situations in which an employee may still file a wrongful termination claim, even after signing a release agreement:
Fraud or Duress
If the employee can prove that they were forced or tricked into signing the release agreement under duress, threats, or misrepresentation, the agreement may be deemed invalid. For example, if an employer misleads an employee about their rights or pressures them into signing the agreement quickly without proper review.
Violation of Public Policy
Certain claims, such as those involving violation of public policy, cannot be waived in a release agreement. If an employee was terminated for reasons that violate California public policy—such as whistleblowing, reporting illegal activity, or refusing to engage in unlawful conduct—a wrongful termination claim may still be valid, regardless of the release agreement.
Claims Not Covered by the Agreement
If the wrongful termination claim involves issues that were not specifically addressed in the release agreement, an employee may still pursue legal action. For instance, if the agreement only covers certain claims like discrimination but does not explicitly mention wrongful termination, an employee might still have the right to sue.
Unwaivable Rights
Some rights are unwaivable under California law. For example, claims for unpaid wages or violations of wage and hour laws cannot be waived by a release agreement. Additionally, employees maintain the right to file a complaint with government agencies like the California Civil Rights Department (CRD) or the Equal Employment Opportunity Commission (EEOC) for violations of anti-discrimination laws.
What Should I Do If I Signed a Release Agreement?
If you have signed a release agreement but believe you were wrongfully terminated, it is critical to consult a Los Angeles employment lawyer as soon as possible. An attorney can help you review the agreement and determine if it’s enforceable or whether have legal grounds to file a wrongful termination claim. Call us today for a free case review.