Employment releases and disability

Workplace Issues

By Mark D. DeBofsky

Mark D. DeBofsky is a name partner of DeBofsky & Associates P.C. He handles civil and appellate litigation involving employee benefits, disability insurance and other insurance claims and coverage, and Social Security law. He can be reached at mdebofsky@debofsky.com.

Posted November 25, 2014 2:41 PM

Employees who are unable to continue working due to medical issues often accept severance payments in exchange for releasing their employers from liability. However, by doing so, acceptance of a severance payment in exchange for a release may preclude a subsequent claim seeking disability benefits. In McGhee v. Aetna Life Insurance Co., 2014 WL 5475042 (W.D. N.C., Oct. 29), the court addressed the issue of the effect of a general release on a claim for disability benefits. While the court concluded that the release …

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