Sample Settlement Agreement and Release for an Employment Law Claim - Missouri

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Sample Settlement Agreement and Release for an
Employment Law Claim
As submitted to the Missouri Bar Association
Labor and Employment Law Committee
October 2004
Drafted by a Committee working group
comprised of Attorney/Mediator Bruce S.
Feldacker, Chair and Attorneys Terry Potter,
representing management and Ferne Wolf,
representing employees
Sample Settlement Agreement and Release for an
Employment Law Claim
As submitted to the Missouri Bar Association
Labor and Employment Law Committee
October 2004
Drafted by a Committee working group
comprised of Attorney/Mediator Bruce S.
Feldacker, Chair and Attorneys Terry Potter,
representing management and Ferne Wolf,
representing employees
SAMPLE SETTLEMENT AGREEMENT AND RELEASE
FOR AN EMPLOYMENT LAW CLAIM (10/30/04)
INTRODUCTORY NOTES:
1.
This form is intended to be a sample settlement agreement containing the provisions typically included in
the settlement agreement of an employment law case. The form was developed by a working group under
the auspices of the Missouri Bar Association Labor and Employment Law Committee and has been
approved as to form by the Committee. The working group was comprised of attorneys Bruce Feldacker,
who serves as a mediator of employment law disputes, Terry Potter who represents employers, and Ferne
Wolf who represents employees in such matters. This sample release form, without modification, is
intended to be a fairly drafted document containing the provisions commonly included in the release of
employment law claims. It may be used “as is” in some cases, especially in cases in which one of the
parties is not represented by counsel (“pro se”), or may serve as the starting point or as a “check list” by
attorneys drafting their own release form. SOME PROVISIONS OF THE SAMPLE AGREEMENT
MAY NOT APPLY IN A PARTICULAR CASE, AND YOU SHOULD CROSS-OUT AND
INITIAL ANY PROVISIONS THAT YOU DO NOT WISH TO INCLUDE.
2.
Every case is different, and the law is subject to change. Thus, any individual using this form should first
consider contacting his/her own attorney for advice.
Neither the Missouri Bar, the Labor and
Employment Law Committee, nor the members of the working group assume any liability for the
correctness of the form or its use in any particular case by attorneys or unrepresented individuals. Any
user should carefully read the entire release and understand its terms before signing it. THERE ARE
MANY VARIATIONS POSSIBLE IN A FAIRLY AND PROPERLY DRAFTED EMPLOYMENT
RELATED RELEASE FORM. THUS, IT SHOULD BE CLEARLY UNDERSTOOD THAT THE
USE OF THIS FORM IS NOT RECOMMENDED BY THE MISSOURI BAR OR THE
EMPLOYMENT LAW COMMITTEE IN PREFERENCE TO ANY OTHER FORM, NOR
REQUIRED IN ANY CASE. NO REQUIREMENT TO USE THIS FORM IS INTENDED; NOR
SHOULD ANY SUCH REQUIREMENT BE IMPLIED.
3.
Paragraph 6 of the settlement form includes two alternative release provisions. Paragraph 6A(i) is a
narrow release of the matters in dispute; Paragraph 6A(ii) is a broad release of all claims. Both options
are included because a broad release of all claims may not be appropriate or mutually agreeable in all
cases. Paragraph 6C permits the parties to exclude other specific matters from the dispute. Paragraph 14
provides space to include other matters in the release that are not otherwise provided for in the form.
There are special provisions for age discrimination in Paragraph 15.
4.
Under Paragraph 6B, this release form does not release workers’ compensation claims, as such claims
cannot be released pursuant to Missouri Revised Statutes Section 287.390.1 unless approved by an
administrative law judge or the commission. Also, under Paragraph 6B, the release does not release
I
vested retirement benefits, vested employment benefits, or rights under COBRA (unless these are the
actual subject of the settlement). These matters are excluded because the issues are frequently separate
and distinct from the issues involved in most employment law disputes, may involve parties ( such as trust
funds or insurance companies) that are not party to the litigation, or may involve matters on which the
parties to this release do not have sufficient knowledge or information to execute a release. If the parties
wish to include these items in the release, they may cross out the exclusionary language in Paragraph 6C
and add such claims as released items in Paragraph 14 (special provisions).
5.
Paragraph 10 of the release includes a non-disparagement clause. The need for such a clause may vary
from case to case, and the parties to the release may have different viewpoints on the matter.
Thus, the
clause is designated as “optional.”
PLEASE INITIAL BELOW TO CONFIRM THAT YOU HAVE READ THE INTRODUCTORY
NOTES BEFORE USING THIS RELEASE.
Initials __________ Initials ________
II
(10/30/04)
SAMPLE SETTLEMENT AGREEMENT AND RELEASE
FOR AN EMPLOYMENT LAW CLAIM
(Please review the Introductory Notes and initial Page II of the Notes before using this
agreement. Be sure to cross-out and initial any provisions of this form that do not apply in this
matter.)
This Settlement Agreement and Release (“Agreement”) is made and entered into by and
between
________________________________________
(hereinafter
referred
to
as
“Claimant”) and ________________________________________ (hereinafter referred to as
“Employer”). In consideration of the following promises, the parties agree to the following:
A.
The parties desire to resolve all matters arising out of Claimant’s employment
related claims against Employer;
B.
Claimant has asserted certain claims against Employer based upon and arising out
of his/her employment with Employer, which claims he/she has brought against Employer in a
Charge of Discrimination (“Charge”) filed with the Equal Employment Opportunity
Commission, Charge No. __________________, and filed with the Missouri Commission on
Human Rights, Charge No. __________________, and which are the basis for an action
denominated __________________________ v. __________________________, Case No.
________________, filed in the ____________________________ (the “Action”). [Note: List
any other causes of action in Paragraph 14 below entitled “Special Provisions in this Agreement
and Release.”]
Page 1 of 13
Initials __________ Initials ___________________________________
C.
Employer has denied, defended and disputed the allegations and claims contained
in the Charge and Action; and
D.
The parties desire to settle and resolve the Charge and Action and all other
disputes and claims which have been or could have been asserted between them. [Note: If any
claims are not resolved by this Release, so indicate in Paragraph 6B and 6C below.]
THEREFORE, for and in consideration of the mutual releases, covenants and
undertakings hereinafter set forth, and for other good and valuable consideration, which each
party acknowledges, it is agreed as follows:
1.
Payment. Within 15 business days following execution of this Agreement or
within 15 business days following the period required by Paragraph 15 (Special Provisions for
Age Discrimination), if applicable, Employer agrees to pay Claimant the total amount of
___________________ Dollars and Zero Cents ($________.00) for settlement of all claims
against Employer that Claimant could have sought, including but not limited to his/her claim for
damages alleging physical injury. Said payment shall be divided as follows:
a.
$________.00 in back pay with applicable taxes withheld.
b.
$________.00 in compensatory damages from which Employer will not withhold
any taxes.
c.
$________.00 as attorney fees to Claimant’s attorney and made payable to
Claimant’s attorney.
d.
$________.00 as _____________________________ (please specify category).
Page 2 of 13
Initials __________ Initials ___________________________________

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