EEOC Sues CVS For ‘Overly Burdensome’ Severance Agreement

The EEOC has taken issue with CVS’ employee severance agreements, saying in a lawsuit filed in the Northern Illinois District Court that the five-page agreement, in small type, contains restrictions that are “overly broad,” and unfairly interfere with workers’ rights to file discrimination charges and communicate with legal agencies. The agency said it took issue with provisions including: the cooperation clause requiring employees to notify CVS’ general counsel upon receipt of administrative complaints; the non-disparagement clause; the confidentiality clause; the covenant not to sue; and the attorney’s fees provision.  “The right to communicate with the EEOC is a right that is protected by federal law,” said EEOC Regional Attorney John Hendrickson, the lead litigator in the case. “When an employer attempts to limit that communication, the employer effectively is attempting to buy employee silence about potential violations of the law. Put simply, that is a deal that employers cannot lawfully make.” Jon Hyman, a partner with Kohrman Jackson & Krantz, says the case could have a significant impact on other employers, many of whom have used similar language in employee agreements.