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Labor Release Form for the United States

Labor Release Form Template for United States

A Labor Release Form is a legally binding document used in the United States that establishes the terms and conditions under which an employee and employer agree to end their employment relationship. The document includes provisions for releasing both parties from future claims, specifying any compensation or benefits to be provided, and outlining any continuing obligations. It must comply with federal laws including FLSA, NLRA, and ADEA, as well as applicable state-specific requirements.

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What is a Labor Release Form?

The Labor Release Form serves as a crucial document in U.S. employment law, typically used during employee separations, layoffs, or voluntary departures. This document protects both employer and employee by clearly defining the terms of separation, including any severance payments, benefit continuations, and mutual releases of claims. The form must comply with various federal regulations, including the Fair Labor Standards Act and Age Discrimination in Employment Act, while also addressing state-specific requirements. A properly executed Labor Release Form helps prevent future disputes and provides legal certainty for all parties involved.

What sections should be included in a Labor Release Form?

1. Parties: Identification of the employer and employee

2. Background: Context of employment relationship and circumstances leading to release

3. Definitions: Key terms used in the release agreement

4. Release of Claims: Specific claims being waived by the employee

5. Consideration: What the employee receives in exchange for the release

6. Acknowledgment: Employee's confirmation of understanding and voluntary acceptance

7. Signature Block: Space for dated signatures of all parties

What sections are optional to include in a Labor Release Form?

1. Non-Disparagement: Mutual agreement not to make negative statements about either party

2. Confidentiality: Agreement to keep terms of the release and settlement confidential

3. Return of Property: Requirements for returning company property and assets

4. Continuing Obligations: Outline of any ongoing responsibilities or obligations post-employment

What schedules should be included in a Labor Release Form?

1. Schedule A - Claims Being Released: Detailed list of specific claims being waived by the employee

2. Schedule B - Consideration Details: Breakdown of compensation or benefits provided in exchange for the release

3. Schedule C - Company Property: Itemized list of company property to be returned by the employee

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Ƶ

Cost

Free to use
Clauses




















Industries

Fair Labor Standards Act (FLSA): Federal law governing wage and hour provisions, overtime requirements, and record-keeping obligations that must be considered in the release form

National Labor Relations Act (NLRA): Federal legislation protecting employee rights and collective bargaining implications that need to be addressed in the release

Title VII of the Civil Rights Act: Federal anti-discrimination provisions and restrictions on waiving discrimination claims that must be incorporated into the release language

Age Discrimination in Employment Act (ADEA): Federal requirements for workers over 40, including mandatory waiting periods for review of release documents

Older Workers Benefit Protection Act (OWBPA): Federal requirements for valid waivers and specific language requirements for release agreements involving older workers

State Labor Laws: Varying state-specific requirements and additional protections beyond federal law that must be incorporated based on jurisdiction

State Release Requirements: State-specific waiting periods and consideration requirements that vary by jurisdiction

Consideration Doctrine: Legal requirement for adequate compensation and distinction between new versus existing obligations in the release agreement

Knowing and Voluntary Waiver: Legal requirement for clear and unambiguous language, including adequate time for review and consultation

Contract Formation Principles: Basic contract law requirements including offer, acceptance, and capacity to contract that must be satisfied in the release agreement

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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