A Settlement Agreement and Release is utilized when parties wish to resolve a dispute without pursuing or continuing litigation. This document is commonly used across all U.S. jurisdictions and must comply with both federal and state requirements. It typically includes settlement terms, release of claims, confidentiality provisions, and non-admission of liability clauses. In employment cases, it must satisfy specific requirements under federal laws such as ADEA and OWBPA. The agreement serves to prevent future litigation on settled matters and provides certainty to all parties.
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1. Parties: Identification of all parties to the settlement, including legal names and addresses
2. Background/Recitals: Context of the dispute and reason for settlement
3. Definitions: Key terms used throughout the agreement
4. Settlement Payment: Amount, payment terms, and method of payment
5. Release of Claims: Scope of claims being released and waived
6. Non-Admission of Liability: Statement that settlement does not constitute admission of wrongdoing
7. Governing Law: Jurisdiction and applicable law
8. Entire Agreement: Integration clause stating this is the complete agreement
1. Confidentiality: Terms of confidentiality regarding settlement terms and conditions
2. Non-Disparagement: Agreement not to make negative statements about other party
3. Tax Treatment: Allocation of tax liability and reporting requirements
4. Return of Property: Requirements for returning company property
5. Medicare Provisions: Medicare reporting and set-aside requirements
1. Payment Schedule: Detailed breakdown of payment terms if installment payments are involved
2. Released Claims Schedule: Detailed list of specific claims being released
3. ADEA Disclosure: Required disclosure for age discrimination releases for employees over 40
4. Property Return Checklist: Itemized list of property to be returned as part of the settlement
Relevant legal definitions
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