The Fourth Circuit issued an opinion in Messer et al. v. Bristol Compressors International, LLC et. al. that should serve as a cautionary tale to employers planning to use severance agreements when implementing layoffs. There, the court considered three questions. First, whether Bristol Compressors validly eliminated its severance plan before terminating Plaintiffs’ employment. Second, whether certain Plaintiffs who signed a Stay Bonus Letter Agreement (“SBLA”) waived their claims against Bristol Compressors. And third, whether four of the Plaintiffs received adequate notice under the WARN Act before their employment was terminated.
Continue Reading Fourth Circuit Outlines Pitfalls in Using Severance Plans for Layoffs

Since the Supreme Court’s 2018 Epic Systems ruling, employers increasingly rely on arbitration agreements for more efficient resolution of both single plaintiff and class action claims.  Prolonged judicial review of arbitration awards, however, can dilute that efficiency.  As a result, some employers include waivers of judicial review, in whole or in part, in their arbitration agreements.

But are such waivers permissible?  In a recent decision, the Fourth Circuit said “yes” as it relates to appellate review. 
Continue Reading Fourth Circuit Holds that the Federal Arbitration Act Does Not Prohibit Parties from Waiving Appellate Review