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Unequal Severance Benefits and Discrimination Claims

BY Kevin C. McCormick
July 26, 2012

In an interesting published decision, the U.S. Court of Appeals for the Fourth Circuit has held that an offer of less favorable severance benefits to a female may constitute sex discrimination in violation of Title VII. This article takes a closer look at this case.

Background Facts

Karla Gerner began working for Chesterfield County, VA, in June 1983. By July 1997, she was the County's Director of Human Resources. Throughout Gerner's career, she always received positive performance evaluations. After she had put in more than 25 years of employment in the County, including 12 as Department Director, on Dec. 15, 2009, County officials informed Gerner that her position was being eliminated due to reorganization. The officials asked Gerner to sign an agreement that offered her three months' pay and health benefits in exchange for her voluntary resignation and a waiver of any claims against the County. Gerner considered the offer for a few days and ultimately declined it. The County then terminated her employment effective Dec. 15, 2009, without any severance pay or benefits.

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