Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: April 17, 2014
The Firm
201-896-4100 info@sh-law.comThe U.S. Equal Employment Opportunity Commission (EEOC) has filed a lawsuit against CVS Pharmacy, Inc. alleging that the pharmacy chain’s standard separation agreement is “overly broad.” Specifically, the EEOC claims that the separation agreement interferes with a former employee’s right to communicate with the EEOC or to file discrimination charges. Employers should take note of this case because the form of agreement used by CVS is not unusual and is similar to the kind used by many other large employers.
The EEOC charges that the separation agreement requires that CVS be notified if the employee participates in an administrative investigation. It also requires the employee not to disparage CVS or its officers, directors or other employees. As a counterpoint, the agreement provides a single line that states that nothing in the terms of the agreement are intended to interfere with the employee’s right to participate in any legal proceeding or to participate with a government agency’s investigation.
The EEOC is seeking to permanently enjoin CVS from using the current version of the separation agreement, and the agency also seeks to prohibit the company from taking any other actions that may inhibit an employee’s right to file a charge.
Because the provisions under attack are commonly used by employers, this case is now on the radar of employment lawyers everywhere as it is feared to be an attack on virtually all separation agreements. Separation agreements play a very important role in helping an employer to secure peace and freedom from damaging lawsuits when an employee leaves his/her employment.
However, with a continuing poor economy, the EEOC has expressed concern that terminated employees are more likely to accept severance pay regardless of the terms of the severance agreement. As a result, the EEOC has begun to attack the standard terms of severance agreements as being unduly restrictive and prohibitive, resulting in its lawsuit against CVS.
The case is U.S. Equal Employment Opportunity Commission v. CVS Pharmacy Inc., case number 1:14-cv-00863, in the U.S. District Court for the Northern District of Illinois Eastern Division.
If you have any questions about this case or would like to discuss the use of separation agreements, please contact me, or the Scarinci Hollenbeck attorney with whom you work.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
Author: Dan Brecher

High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Author: Dan Brecher

Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
Author: Ken Hollenbeck

Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
Author: Robert E. Levy

Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]
Author: Dan Brecher

Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!