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Report Link What?!? I Thought We Settled That Case! The Sixth Circuit Weighs in on Overbroad Settlement Agreements Under OWBPA.Baker, Donelson, Bearman, Caldwell & Berkowitz, PC - August 28, 2009 We recently reported on the EEOC's guidance concerning waivers of employment law claims, particularly the release of age discrimination claims under the Age Discrimination in Employment Act (ADEA) and Older Workers Benefits Protection Act (OWBPA). See "New EEOC Guidance for Employees (That's Right – Employees!" Days later, the United States Court of Appeals for the Sixth Circuit issued an opinion in Neely v. Good Samaritan Hosp., 6th Cir., No. 07-4281, unpublished opinion 7/31/09, which further explored the complexities of securing a valid age discrimination release under these two laws. Report Link Court Invalidates Group Termination Releases, Requiring Strict Compliance with OWBPA.Jackson Lewis LLP - June 09, 2008 Releases can give employers peace of mind and limit liability, but they must be properly drafted and implemented. A district court in Minnesota has invalidated releases signed by the plaintiffs in a putative age discrimination class action because the court found the releases did not satisfy the requirement of including a “knowing and voluntary” waiver of the former employees’ right to sue under the Older Workers Benefit Protection Act (“OWBPA”). Peterson, et al. v. Seagate U.S. LLC, 2008 U.S. Dist. LEXIS 42179 (May 28, 2008). Plaintiffs, who signed releases when they were terminated during a reduction in force (“RIF”), alleged the company violated the Age Discrimination in Employment Act (“ADEA”) by disproportionately terminating older workers during the RIF. Report Link Eleventh Circuit Clarifi es Information Required in Release of Age Discrimination Claims (pdf).Ford & Harrison LLP - October 18, 2006 The Eleventh U.S. Circuit Court of Appeals has clarifi ed
the scope of information employers must provide to employees
who are terminated as part of a reduction in force,
if the employer seeks a release of Age Discrimination in
Employment Act (ADEA) claims from the discharged employees.
See Burlison v. McDonald’s Corp. The Older Workers
Benefi ts Protection Act (OWBPA) requires employers to
provide certain information to employees who are asked
to waive potential ADEA claims. Essentially, these employees
must be provided with the ages and job titles of
employees selected for discharge and those not selected.
Congress established this provision to enable employees
who are asked to release ADEA claims to compare the
ages of employees who were discharged with those who
were not.
Report Link 11th Circuit Provides Guidance on OWBPA Disclosure Requirements.Elarbee, Thompson, Sapp & Wilson, LLP. - September 15, 2006 In the context of group terminations, employers seeking releases of potential age discrimination claims from affected employees are required to comply with the Federal Older Workers Benefit Protection Act (“OWBPA”), which requires, among other things, the disclosure of the job titles and ages of employees selected for discharge. Whether the scope of this information needed to be company-wide, however, has long been a source of confusion and debate for HR professionals and employment attorneys. The Eleventh Circuit recently provided guidance on this issue, holding in Burlison v. McDonald's Corp. that, in the context of a company-wide restructuring, the information comprising the required disclosures was properly limited to the “decisional unit." Report Link Special Rules on Release Agreements for Workers Raise Questions and Create Litigation Risks.Jackson Lewis LLP - September 13, 2006 Severing the employment relationship with the assurance that everyone will "shake hands and have a nice life" is becoming more difficult. Agreements that attempt to release employers from all claims arising from the employment relationship and that will withstand judicial scrutiny are proving to be elusive. With all separating employees, employers must ensure that such agreements are knowingly and voluntarily entered into, are not overly broad, and do not on their face violate anti-discrimination and other laws. Employers also must comply with special release requirements for employees age 40 and over. Report Link Employee waived age bias claim (pdf).Ogletree Deakins - September 12, 2006 Court finds severance agreement valid under federal law. Report Link Defective Release Enables Terminated Workers To Pursue Age Claims (pdf).Vedder Price - September 08, 2006 Two federal appellate courts have now held that releases signed by IBM employees who were terminated (and
received severance benefi ts) during a workforce reduction were not effective to release the company from liability
for age discrimination claims subsequently brought by those employees. In Syverson v. International Bus. Mach.,
No. 04-16449 (August 31, 2006), the Ninth Circuit Court of Appeals held that IBM’s release agreement was
invalid. This decision follows a similar ruling from the Eighth Circuit Court of Appeals in 2005 construing the
same release. Report Link Release Of Claims Held Invalid By Court (pdf).Ogletree Deakins - November 09, 2005 A federal appellate court recently
reinstated a lawsuit brought by a group
of workers who sued their former employer
under the Age Discrimination in
Employment Act (ADEA). The court held
that releases signed by the laid off workers
were unenforceable because they
failed to conform to the statute’s specific
requirements. Report Link Make Sure That Releases Are Drafted Carefully and in Plain Language When Terminating Workers (pdf).Buchanan Ingersoll & Rooney PC - November 02, 2005 In order to avoid expensive and time
consuming lawsuits, companies will
often require employees to sign a
severance agreement that provides
them with additional compensation
in return for a settlement and
release of any claims that they may
have against the company. Often,
however, these severance
agreements are drafted in legal
jargon that is confusing to the
employee. Report Link I Don’t Know Why They Picked Me: 10th Circuit Broadens Requirements For Waiving Age Discrimination Claims.Littler Mendelson, P.C. - September 23, 2005 Employers’ historical understanding of what they must communicate to employees asked to release age discrimination claims may be fatally insufficient, following a recent decision from the U.S. Court of Appeals for the Tenth Circuit. Employers seeking waivers of Age Discrimination in Employment Act (ADEA) claims in accordance with the Older Workers’ Benefit Protection Act (OWBPA) now must clearly explain not only who has been selected for layoff, but why selections were made. Report Link Class Action Update -- Age Discrimination in Employment Act Waivers (pdf).Vedder Price - July 12, 2004 In its 2000 decision in Adams v. Ameritech Services, Inc., 231 F.3d 414, 431 (2000), the United States Court of Appeals for the Seventh Circuit noted that "[t]hroughout the decade of the 1990’s, corporate downsizing was a popular strategy for companies that believed they had become indolent, complacent, inefficient, or otherwise unsuited to the ever-increasing pace of competition in their markets." Report Link defective release does not bar an age discrimination claim under the adea. Fredrikson & Byron, P.A. - June 01, 1998 Discusses Oubre v. Energy Operations, Inc., 522 U.S. 422 (1998), which addressed the validity and enforceability of OWBPA releases.
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ArticlesFound: 12 ArticlesNO SUBTOPICSEmployment Law Seminars
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December 8, 2009 Baker HostetlerPREVENTING HARASSMENT AND OTHER EEO ISSUES AT WORK: IT’S ALL ABOUT RESPECT (AB 1825 COMPLIANCE)Sacramento
December 9, 2009 Shaw Valenza |
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