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New Law Changes Employee Separation Agreements

As a result of a federal law enacted in October, employers may have to retire a time-honored arrangement they often enter into with departing employees. So reports Forbes.com.

Specifically, it’s probably no longer a good idea for employers to use a separation agreement clause that states only that “the Employer agrees not to contest the employee’s unemployment compensation claim.”

In recent years, that stipulation has been popular among employers, who include it to secure their departing employees’ consent to release the employers from liability for potential legal claims.

Read the full article from Forbes.

 

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