Legal Alert - Standard Severance Agreements May Need to Be Revised
August 19, 2016
Many employers offer severance agreements to departing employees which, at least in part, are designed to protect the employer from disclosures of confidential information and from any future claims or recovery by the departing employee. Unfortunately, two recent cease-and-desist orders issued by the Securities and Exchange Commission (SEC), which contained both large monetary penalties and burdensome notice requirements, may require employers, both publicly and privately held, to revise the language that is currently contained in most standard severance agreements.
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