Separation Agreement
(Employment) (MN)

This template is a Separation Agreement (also known as a severance agreement) that an Employer in Minnesota may use when it terminates an Employee and seeks to obtain a general release of claims from the Employee. It contains practical guidance, drafting notes, alternate clauses, and optional clauses. This template is intended for private Employers. Its language has been customized to comply with Minnesota and federal law. As a result, the text of this template differs from the non-jurisdictional Separation Agreement (Employment). This template is drafted to satisfy the requirements under the Older Workers Benefit Protection Act of 1990 (OWBPA) for ensuring that a release of claims constitutes a voluntary and knowing waiver of rights under the Age Discrimination in Employment Act of 1967 (ADEA). Although the ADEA only protects Employees age 40 or over, the template incorporates the OWBPA-compliant Employee review period, revocation period, and other terms as default provisions since many Employers prefer to use a single version of the template for administrative efficiency and such terms can help bolster the enforceability of a general release if challenged. However, when terminating the employment of younger Employees, you may remove or shorten the review period and omit the references to the OWBPA and ADEA, but you should continue to provide for a minimum 15-day revocation period, as required to release claims under Minnesota Human Rights Law. To obtain a valid waiver of ADEA claims when more than one Employee's employment is being terminated, provide the additional OWBPA disclosures required as described in Alternate Section and its drafting note. For additional information on drafting separation agreements, see Separation Agreements: Drafting and Negotiation Tips (Pro-Employer) and Separation Agreements: Key Negotiating Issues (Pro-Employee). For other annotated separation agreements, see Separation Agreement and General Release (Individuals under 40) and Separation Agreement and General Release (Individuals 40 and over). For a full listing of key content covering departing employees, see Departing Employees Resource Kit. For termination requirements under Minnesota law, see the Minnesota row of Investigations, Discipline, and Terminations State Practice Notes Chart. See the Special Release Issues column for notes on waiving employment claims in release agreements in Minnesota and other states. For a full listing of key content covering the provision of severance or separation pay on various terminations of employment, see Severance Benefits Resource Kit.