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What Is Knowing and Voluntary? One Court’s Take on the Enforceability of ADEA Waivers

A recent district court opinion in Romero v. Allstate Insurance Company, et al., 2016 WL 2619853 (E.D. Pa. May 4, 2016), underscores that there is not a “one-size-fits-all” approach for employers seeking “knowing and voluntary” waivers of employee claims under the Age Discrimination in Employment Act of 1967 (ADEA), as required by the Older Workers Benefit Protection Act of 1990 (OWBPA). Employers must carefully consider the terms of severance agreements and the circumstances surrounding the procurement of ADEA waivers because, as Romero illustrates, the failure to give employees a meaningful choice could limit the enforceability of a release.
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