Releases Under Age Discrimination Law
If the federal Age Discrimination in Employment Act applies to you (generally, if you have 20 or more employees during 20 or more weeks in the year) and if the worker is more than 40 years old, there are special rules that apply. These rules are designed to make sure that the release was signed "knowingly and voluntarily."
- The waiver must be written in language that can be understood by the average worker to which it applies.
- The waiver must specifically mention rights and claims under the Age Discrimination in Employment Act.
- The waiver may not waive rights or claims that may arise after the date it is signed.
- The waiver must be in exchange for valuable consideration in addition to what the individual would already be entitled to receive.
- The individual must be advised in writing to consult with an attorney before signing the waiver.
- Generally, the individual must be given at least 21 days to consider the agreement, but if the waiver is requested in connection with an exit incentive or other employment termination program offered to a group of employees, each worker must be given at least 45 days to consider the agreement.
- The individual must be given at least seven days after signing the waiver to change his or her mind and revoke it, and the waiver may not become effective until the seven-day period has expired.
Early retirement or exit incentives. There are a few other requirements if the waiver is requested as part of any exit incentive or other employment termination program offered to a class of employees. If you are offering such a program to a group of employees, the individuals must be informed in writing about:
- whom the program covers
- what are the eligibility requirements
- what are the time limits for the program
- what are the job titles and ages of all individuals eligible or selected for the program
- what are the ages of all individuals in the same job classification who are not selected for the program
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