Accessibility Tools

Skip to main content

WORKER'S COMPENSATION SETTLEMENT USED TO BAR DISCRIMINATION CLAIMS

Written on .

In a recent case, an employee who had worked for J.C. Penney was terminated and brought a workers' compensation claim as well as a claim for violations of the discrimination laws.  Soltis v. J.C. Penney Corp., 128 FEP Cases 804 (C.A. 6, 2015).  After the workers' compensation claim was settled, J.C. Penney moved for summary judgment arguing they were released by the terms of the workers' compensation settlement.  As part of the workers' compensation settlement, the claimant signed a release which provided that the claimant releases J. C. Penney from any and all claims arising out of or in connection with her employment, or termination thereof, including but not limited to the various discrimination laws. 

The Sixth Circuit Court of Appeals found that in the course of settlement of a workers' compensation claim, the parties may agree to also release ancillary claims, such as a discrimination claim.  In determining the enforceability of such releases, basic principles of contract law apply. 

Editor's Note:  Readers should note that some states do not allow a workers' compensation settlement to go beyond settlement of the workers' compensation claims.  Even in such states, however, normally two settlement agreements can be drafted, one settling the workers' compensation claim, and the other settling any and all other potential employment claims.

Related Content

Get Email Updates

Receive newsletters and alerts directly in your email inbox. Sign up below.

Recent Content

promo graphic, Responding to a Plaintiff Attorney’s Demand Letter
It is quite common for plaintiff’s attorneys to write a letter to a company, popularly called a “demand letter,” claiming the employer has…
scales of justic and gavel
On June 9, 2026, the U.S. House of Representatives passed the Faster Labor Contracts Act (FLCA), a concept long supported by organized labo…
gavel, court room table
In a Department of Justice (DOJ) Memo issued on June 9, 2026, the DOJ has re-evaluated the Equal Employment Opportunity Commission’s (EEOC)…
woman symbol lineup
The U.S. Supreme Court has upheld the laws of two states reserving female teams for biological females, finding such laws do not violate ei…
stack of reports
A vote on July 21, 2026, was 2-1 by the EEOC Commissions to end workforce demographic data collections.  A notice of rulemaking must appear…
pile of cash
Individuals and corporations can begin making contributions to tax-advantaged investment accounts for children starting July 4, 2026, and s…