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Daily Weekly  [More Information]
Article Index » age discrimination » waiver & release
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 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 New Regulations Limit Employers Under ADEA Waivers [PDF File].
Lowenstein Sandler PC - August 01, 2001
The Equal Employment Opportunity Commission (“EEOC”) has promulgated regulations that alter an employer's latitude when obtaining waivers of claims under the federal Age Discrimination in Employment Act (“ADEA”).
Report Link Failure to Use Proper Release Language Can Hold Dire Consequences.
Testa, Hurwitz & Thibeault, LLP - July 01, 2001
Discusses Massachusetts v. Bull HN Info. Sys., Inc., (D. Mass 2001), in which the court examined the requirements of a valid OWBPA release.
Report Link Final Regulation On "Tender Back" and Related Issues Concerning ADEA Waivers.
Equal Employment Opportunity Commission - December 11, 2000
Text of Final Regulation, which states that, under the Older Workers Benefit Protection Act of 1990, employees cannot be required to tender back the consideration received under a waiver agreement before being permitted to challenge the waiver agreement in court, and addressing related issues.
Report Link Questions and Answers on Final Regulation On "Tender Back" and Related Issues Concerning ADEA Waivers.
Equal Employment Opportunity Commission - December 11, 2000
Q&A on EEOC Final Regulation, which states that, under the Older Workers Benefit Protection Act of 1990, employees cannot be required to tender back the consideration received under a waiver agreement before being permitted to challenge the waiver agreement in court, and addressing related issues.
Report Link Preventing Post-Employment Lawsuits: Releases That Do the Job.
Kauff, McClain & McGuire LLP - September 01, 1998
Discussion of EEOC regulations on ADEA waivers and Oubre v. Energy Operations, Inc., 522 U.S. 422 (1998), which addressed the validity and enforceability of OWBPA releases.
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.
Report Link EEOC Enforcement Guidance.
Equal Employment Opportunity Commission - April 01, 1997
Enforcement Guidance on non-waivable employee rights under Equal Employment Opportunity Commission (EEOC) enforced statutes.

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