In short, it could.
By signing a severance agreement, you could waive your right to bring any action against your employer. This could include your employer’s benefit plan under which your disability coverage falls. Often times the agreement will have a long list of statutes or laws that you agreeing not to bring a lawsuit under. The Employee Retirement Income Security Act or ERISA is often included in that list.
ERISA governs group disability insurance benefits, among other things. So, by signing a severance agreement you may be waiving your right to bring an action under ERISA for disability insurance benefits. This could be problematic for someone who lost their job due to a disability and is fighting for their disability insurance benefits.
It is important to consult an attorney before signing any severance agreement. You want to be sure you are not waiving your right to disability insurance benefits or other benefits to which you may be entitled.
Call us today for help navigating this complicated matter!