• videocam Live Webinar with Live Q&A
  • calendar_month June 25, 2026 @ 1:00 PM ET/10:00 AM PT
  • signal_cellular_alt Intermediate
  • card_travel Employment & Workers Comp
  • schedule 90 minutes

Voluntary Separation Programs: Key Regulatory Considerations; Employer Pros and Cons; Design and Implementation

Complex Regulatory, Benefits, and Tax Issues; Best Practices for Mitigating Risk of Enforcement Action and Litigation

About the Course

Introduction

This CLE webinar will examine how to design legally compliant voluntary separation programs (VSPs). The panel will discuss when employer clients should consider VSPs as an alternative to or in conjunction with involuntary separations. The panel will address key considerations for designing and implementing compliant VSPs, including complex regulatory, benefits, and tax issues. The panel will also offer best practices for mitigating the risk of enforcement action and litigation.

Description

In a volatile economy, employers are faced with workforce reorganization and downsizing to cut costs. Many are considering VSPs as part of a reorganization strategy because they can reduce the workforce while mitigating certain litigation risks that may come along with involuntary terminations. However, VSPs come with their own risks of which counsel should be aware.

VSPs generally offer enhanced benefits to employees in exchange for their agreement to voluntarily separate from their employment within a defined period and execute a release of claims against the employer. Yet, designing and implementing VSPs requires counsel and their employer clients to understand complex benefits, tax, and employment regulatory issues to avoid the risk of noncompliance.

Key considerations for designing and implementing a VSP include: (1) ensuring that employee participation is completely voluntary without employer coercion (e.g., "first come, first served"); (2) clearly defining legitimate business reasons for the program, an objective selection process, and eligibility requirements not linked to any protected characteristics such as age; (3) complying with ADEA and OWBPA requirements for employees who are age 40 and above including providing certain written disclosures, identifying the decisional unit from which the employee is chosen to be offered VSP participation, and allowing the requisite time periods for offer consideration and revocation; and (4) ERISA and tax considerations when structuring the severance plan.

Listen as our expert panel examines the use of VSPs in workforce reorganization strategies. The panel will discuss key considerations for determining whether to use a VSP and offer best practices for VSP design and implementation.

Presented By

Greg Grisham
Partner
Fisher & Phillips LLP

Mr. Grisham has over 30 years of successful experience counseling and representing employers in all aspects of workplace law in Tennessee and across the U.S. He has helped employers avoid claims, charges, and lawsuits with a focus on preventative practices, including counseling on discipline, termination, demotion, promotion and other workplace changes,  investigations, wage and hour compliance, reasonable accommodation assessment, supervisor training and the review of employment policies and procedures. Mr. Grisham has successfully litigated hundreds of administrative charges, employment lawsuits, and arbitration demands on behalf of employers, including federal and state law claims alleging discrimination, harassment, retaliation, wrongful termination, invasion of privacy, defamation, breach of contract, and wage and hour violations, among others. He represents employers in the prosecution and defense of trade secret claims, and in the enforcement of post-employment restrictive covenants such as non-compete, non-solicitation, and non-disclosure agreements. Mr. Grisham also represents employers in unfair labor practice and union representation election proceedings before the National Labor Relations Board. He is a Member of the American Employment Law Council, a Fellow of the College of Labor and Employment Lawyers and of the American Bar Foundation. Mr. Grisham is a past Chair of the Memphis Bar Association's L&E Section and of the Tennessee Bar Association's L&E Section where he currently serves on the Executive Committee.

David R. Johanson
Chair Employee Benefits & ERISA Group
Hawkins Parnell & Young

Drawing on 40 years as an advisor and litigator, Mr. Johanson provides strategic and practical legal counsel on employee ownership, executive compensation, equity incentive plans, non-qualified deferred compensation, and employee stock ownership plans. He advises on mergers and acquisitions, tax planning, business succession, estate planning, shareholder disputes, and non-competition issues, among other corporate and ERISA-related matters. Mr. Johanson defends companies and executives in complex business, employment, and class action disputes in federal and state courts nationwide. He has represented clients before regulatory agencies such as the U.S. Department of Labor, Internal Revenue Service, and Equal Employment Opportunity Commission, handling tax controversies, felony criminal indictments, and diverse ownership and business dispute resolutions. He also routinely defends ERISA fiduciaries, plan sponsors, selling shareholders, and investment and valuation advisers in high-stakes litigation spanning ESOP valuation disputes, fiduciary responsibilities, disclosure obligations, and investment issues. In addition, Mr. Johanson has argued cases before the U.S. Courts of Appeals for the Third, Fifth, Seventh, and Ninth Circuits and filed multiple petitions for writ of certiorari with the U.S. Supreme Court. Nationally recognized for his expertise and leadership in the ESOP field, he leads an innovative team that has handled more than 750 ESOP transactions. 


Credit Information
  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.


  • Live Online


    On Demand

Date + Time

  • event

    Thursday, June 25, 2026

  • schedule

    1:00 PM ET/10:00 AM PT

I. Introduction

A. What are VSPs?

B. Pros and cons of VSPs vs. involuntary terminations

II. VSP design and implementation

A. Employee selection and eligibility criteria

B. Determining what to offer in exchange for a voluntary separation

C. Employment regulatory considerations

1. ADEA

2. OWBPA

3. Federal and state anti-discrimination obligations

4. Other

D. ERISA and tax issues

E. Severance agreements

III. Key takeaways

The panel will review these and other important issues:

  • What are the benefits of using a VSP when downsizing a workforce? The risks?
  • What are key federal and state regulatory considerations that counsel and clients should keep in mind when designing and implementing a VSP?
  • What important provisions should be included in any severance agreement related to the VSP?