Legal Question in Employment Law in Massachusetts
Involuntary termination
If an employee is fired, are they required to sign a separation agreement to receive their final check? or do they sign only if they are receiving a severence?
1 Answer from Attorneys
Re: Involuntary termination
I don't think an employer can withhold wages due and owing to the employee in exchange for the employee's execution of a "separation agreement," which is really a nice term for binding release of claims.
The employer might be able to legitimately claim the wages are not due, based on some breach by the employee (perhaps resulting in the termination itself), or because the employee's failed to adequately perform his/her obligations. In this case, the employer would claim the final payment is not wages but actually a severence payment (in my judgment a weak and risky argument).
But steadfastly witholding earned wages already due in exchange for a relaease of claims, looks a lot like commercial extortion to me.