SEPARATION AGREEMENT AND GENERAL RELEASE
(State-specific base: DC)
[// GUIDANCE: Use employer letterhead if desired. Confirm compliance with state wage payment, PTO payout, and any required language before issuing.]
1. Parties and Key Dates
- Employer: [Company legal name and entity type]; address: [address].
- Employee: [Employee legal name]; address: [address].
- Separation date: [date].
- Final pay timing (D.C. Code § 32-1303): if discharged, wages earned are due no later than the working day following discharge (up to 4 working days if Employee is responsible for employer monies/accounts); if resignation without a written contract >30 days, wages are due by the next regular payday or within 7 days, whichever is earlier. Late payment may trigger liquidated damages under D.C. law.
- PTO/vacation payout: state what counts as earned/accrued under the employer policy; DC treats accrued paid leave as vested compensation absent an agreement to the contrary. If policy provides payout (or no contrary agreement), specify rate and timing; if policy validly denies payout, state that expressly.
2. Consideration and Benefits
- Severance: [amount] payable [lump sum/installments] less required withholdings; conditioned on timely execution and non-revocation.
- COBRA/benefits: [duration and amount of employer contribution]; subject to plan terms.
- Outplacement or transition support: [if any].
3. Equity, Bonus, and Other Compensation
- Equity awards: state treatment of vested/unvested equity, exercise deadlines, and post-termination service rules.
- Bonus/commissions: specify earned/unearned status, proration, and payment timing.
- Expense reimbursement: confirm all business expenses have been submitted; commit to pay in compliance with state law.
4. Release of Claims and Carve-Outs
- Employee releases Company and affiliates from all claims through the signing date arising from employment or separation.
- Carve-outs: enforcement of this Agreement; vested benefits; claims arising after signing; unemployment or workers compensation benefits; indemnification rights; rights that cannot be waived by law; right to file or cooperate with agencies (EEOC, NLRB, DOL, SEC, OSHA, state equivalents); whistleblower and protected disclosures; NLRA Section 7 rights for non-supervisory employees; Speak Out Act and any state Silenced No More style protections.
- Unknown claims: release covers known and unknown claims to the fullest extent permitted under District of Columbia law.
5. ADEA/OWBPA (if 40 or older)
- Consideration period: [21 or 45] days; revocation period: 7 days after signing.
- Written advice to consult independent counsel; employee acknowledges opportunity to do so.
- If part of group exit, attach required decisional-unit disclosures where applicable.
6. Confidentiality, Non-Disparagement, and Protected Disclosures
- Confidentiality limited to Agreement terms and underlying negotiations, subject to legal requirements and protected disclosures.
- Non-disparagement: mutual, time-limited, excludes truthful testimony, agency filings, and protected concerted activity.
- Protected disclosures: nothing restricts reporting suspected illegality, harassment, discrimination, retaliation, wages, or safety issues to government agencies or making disclosures protected by the Speak Out Act or DC law; preserves rights to discuss wages/working conditions, seek legal advice, and participate/testify in proceedings (including arbitration).
7. Restrictive Covenants and No-Rehire (Optional)
- Confirm continuing obligations under existing NDAs and invention assignment. For noncompetes, comply with DC’s Non-Compete Clarification Amendment Act: generally prohibited for covered employees; permitted for highly compensated employees only if thresholds are met, statutory notice/disclosure is provided (including prescribed language), 14-day advance delivery, functional/geographic limits, and duration capped (typically 365 days; 730 days for medical specialists). Remove noncompete references entirely if using for covered employees.
- No-rehire clause optional; include only if lawful in DC and consistent with public policy.
8. Return of Property and Information Security
- Employee confirms return of all devices, files, credentials, and confidential information; no copies retained; accounts access terminated except as required by law.
- No deductions/offsets from final wages except as allowed by law and consistent with DC wage payment rules.
9. Dispute Resolution
- Governing law: DC.
- Forum: [court location]; arbitration optional. If arbitration is selected, exclude claims that cannot be compelled to arbitration (for example, claims covered by the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act) and allow small-claims court access.
- Jury waiver only if enforceable under DC law.
10. State-Specific Overlay Checklist
- Final wages: DC deadlines per D.C. Code § 32-1303 (working day after discharge; next payday/7 days for resignation; 4-day accounting exception where applicable) and liquidated damages risk if late.
- PTO/vacation: clarify policy terms; accrued leave often treated as vested compensation absent an agreement to the contrary—state payout or valid denial explicitly.
- Noncompetes: apply DC Non-Compete Clarification Amendment Act (covered vs. highly compensated employees; thresholds; notice language; 14-day delivery; scope and duration caps; consider removing noncompetes for covered employees).
- Protected disclosures/agency cooperation and wage/working-condition discussions preserved.
- Deductions only as permitted by DC law; confirm any specific authorization requirements.
- Translation/readability or notary/witness needs (if any) for DC use.
11. Signatures
Employer: ___________________________ Date: __________
Name/Title: __________________________
Employee: ___________________________ Date: __________
[Optional exhibits: OWBPA group disclosure; payment schedule; reference letter; restrictive covenant summary; any state-permitted unknown-claims waiver text.]