When employee's release of claims under Massachusetts Wage Act is enforceable

Employers routinely use severance agreements to eliminate their risk of liability to former employees, even when their exposure to a claim is low. They do so chiefly because severance agreements typically include a broad, general release of all claims arising out of the employment relationship. Of course, certain categories of claims can't be waived by law (e.g., for vested benefits, workers' compensation, and unemployment aid). But under a decade-old Supreme Judicial Court decision, claims under the Massachusetts Wage Act could validly be waived as long as the release itself made reference to the statute by name. That may no longer be the case. According to a recent decision out of the U.S. District Court for the District of Massachusetts, a release of claims under the Act is enforceable only when the parties intend to resolve a preexisting wage dispute.

Restructuring leads to job loss months after negotiating lucrative deal

In July 2018, IQVIA Inc. hired Stephen Brennan as a senior director of business development within its contract sales and medical solutions team. About a year into his employment, he began working on a business deal with a pharmaceutical company. Five months later, in large part because of his efforts, the parties reached a verbal agreement on a deal worth nearly $30 million.