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Neutral Reference Settlement Agreement for the United States

Neutral Reference Settlement Agreement Template for United States

A Neutral Reference Settlement Agreement is a legally binding document used in the United States that establishes the terms and conditions under which an employer will provide employment references for a former employee. This agreement typically results from the resolution of an employment dispute or separation and outlines specific language and information that can be shared with potential future employers. It includes provisions for confidentiality, non-disparagement, and often includes specific templates or guidelines for providing references. The agreement is subject to federal employment laws and state-specific regulations regarding employment references and settlement agreements.

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What is a Neutral Reference Settlement Agreement?

The Neutral Reference Settlement Agreement is commonly utilized when an employment relationship has ended and both parties wish to establish clear parameters for future employment references. This document is particularly relevant in situations where there has been a dispute or when parties want to prevent potential future conflicts. The agreement typically specifies exactly what information can be shared about the employee's tenure, including dates of employment, positions held, and agreed-upon characterizations of the employment relationship. Under U.S. law, this agreement helps protect both the employer from potential defamation claims and the employee from negative references, while providing a framework for consistent and mutually acceptable reference practices.

What sections should be included in a Neutral Reference Settlement Agreement?

1. Parties: Identification of all parties involved in the settlement agreement

2. Background/Recitals: Context of the settlement and the circumstances leading to the agreement

3. Definitions: Key terms used throughout the agreement

4. Settlement Terms: Core agreement regarding the neutral reference arrangement

5. Reference Content: Specific agreed-upon content of future employment references

6. Non-Disparagement: Mutual obligations regarding future communications

7. Confidentiality: Terms regarding confidentiality of the agreement and its contents

8. Release of Claims: Mutual release of potential claims between parties

9. Governing Law: Applicable jurisdiction and legal framework

What sections are optional to include in a Neutral Reference Settlement Agreement?

1. Consideration: Specific provisions regarding any financial or other consideration provided as part of the settlement

2. Severability: Provision for maintaining validity of the agreement if certain parts are found unenforceable

3. Survival: Specification of which provisions survive termination of the agreement

4. ADEA/OWBPA Provisions: Specific provisions required for age-related settlements when employee is 40 or older

What schedules should be included in a Neutral Reference Settlement Agreement?

1. Approved Reference Template: Standard format and content for future employment references

2. Designated Contact List: List of authorized personnel to provide references

3. Release Form: Standard release form for requesting references

4. Employment History Summary: Agreed factual summary of employment dates and positions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use
Clauses























Industries

Employment Law Considerations: Key federal regulations including Title VII of the Civil Rights Act (anti-discrimination), Fair Labor Standards Act (FLSA), state-specific employment laws, and EEOC guidelines that affect employment-related settlements

Contract Law Fundamentals: State-specific contract laws, Statute of Frauds requirements, and basic contract formation principles including consideration and mutual assent

Privacy Law Requirements: Fair Credit Reporting Act considerations for reference checks, state-specific privacy laws, and data protection requirements for handling personal information

Defamation Law Principles: State-specific defamation laws, truth as a defense principles, and qualified privilege considerations in employment context for reference providing

Settlement Agreement Requirements: Age Discrimination in Employment Act (ADEA) compliance, Older Workers Benefit Protection Act (OWBPA) requirements, and state-specific settlement agreement provisions

General Release Provisions: State-specific requirements for valid releases, consideration requirements, and applicable revocation periods

Non-Disparagement Regulations: First Amendment considerations and state-specific restrictions on non-disparagement clauses in settlement agreements

Confidentiality Requirements: Trade secrets laws, non-disclosure agreement requirements, and whistleblower protection provisions that affect confidentiality clauses

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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