Takeaway: In determining whether an employee has waived discrimination claims by signing a purported waiver agreement, a court will consider a number of factors, including the employee’s experience and education, the clarity of the alleged waiver, and the circumstances under which the agreement was entered into.

An employee might not have waived his racial discrimination claims by signing an agreement that released his employer from all liability regarding the worker’s employment, a federal appeals court ruled. After examining the employee’s background, the situation in which the employee signed the agreement, and the wording of the agreement, the court concluded that it was unclear whether the employee had waived his claims and that, therefore, a lower court had erred in dismissing the claims before trial.

The employee held various positions at a soft drink bottling company from 2015 to 2018. In March 2017, he was involved in an accident at work and underwent drug testing, pursuant to the company’s drug and alcohol policy. He tested positive for marijuana, although the amount in his sample was less than the amount prohibited by the company’s drug policy. The company nevertheless negotiated a second-chance agreement (SCA) with its employees’ union and the employee, which stated that the employee would be subject to 24 months of random drug testing.

In June 2017, the employee was cited as being insubordinate for swearing and inciting a work slowdown during a pre-shift...

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