Federal Older Workers Benefit Protection Act

The Older Workers Benefit Protection Act (the Act) prohibits discrimination against older workers in all employee benefits, except when justified by significant cost considerations. Older workers are those who are 40 or more years old.

When an older worker releases their employer from a potential claim for age discrimination—which most commonly occurs upon the signing of a severance agreement—the employer must ensure the following:

• The release is reasonably understandable.
• The release specifically refers to rights or claims arising under the Act.
• The release does not cover claims that could arise after the employee signs it.
• The employee receives something sufficiently valuable for signing the release, in addition to anything they are already entitled to.
• The employer tells the employee in writing that they should consult with an attorney before signing the release.
• The employee has at least 21 days to consider signing the release (or at least 45 days if the release is part of an exit incentive or other employment termination program offered to multiple employees).
• If the release is part of an exit incentive or other employment termination program offered to multiple employees, the employer informs the employee in reasonably understandable writing as to the following:
• Any class or group of employees affected any eligibility factors, and any applicable time limits.
• The job titles and ages of all employees eligible or selected and the ages of all employees in the same job classification or organizational unit who are not eligible or selected.
• The employee has at least 7 days after signing the release to revoke it.
• Different conditions apply if the employee has filed a complaint with the Equal Employment Opportunity Commission or in court.