Monday, September 22, 2014

Judge Benchslaps EEOC in CVS Severance Agreement Case

Back on July 24, we wrote about the EEOC's ongoing war against severance agreements.  In that post, we noted that what the EEOC was doing amounted to an assault on time-honored contractual arrangements that have been enforced by countless courts.

In fact, that rationale was the cornerstone of CVS's defense.  The pharmacy giant maintained that its severance agreements were simply run-of-the-mill contracts, voluntarily entered into by willing employees, and containing garden-variety provisions that other companies have used for years without challenge by the EEOC.

Late last week, a federal judge agreed and dismissed the lawsuit in its entirety.  (Here)  The judge said that a written opinion would be released soon, so we don't yet know the precise reasons behind the decision.  What we do know, however, is that many employers probably are breathing a little sigh of relief this morning. 

Of course, the EEOC may well file an appeal . . .

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