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Older Workers Benefit Protection Act (OWBPA)
Practical Law Glossary Item 7-504-0021 (Approx. 3 pages)
Glossary
Older Workers Benefit Protection Act (OWBPA)
A federal law amending the Age Discrimination in Employment Act (ADEA) and prohibiting age discrimination in the employee benefits of older workers. The OWBPA requires employment agreements releasing ADEA claims to be knowing and voluntary, which requires, at a minimum, that the release:
- Is written in a manner calculated to be understood by the employee releasing it or the average individual eligible to participate.
- Specifically refers to the employee's ADEA rights or claims.
- Does not waive the employee's rights or claims arising after the date the release is signed.
- Waives the employee's rights or claims only in exchange for consideration not already owed to the employee (see Practice Note, Conducting Layoffs and Other Reductions in Force: Severance Packages or Plans and Layoffs and Reductions in Force Checklist: Severance Considerations).
- Advises the employee in writing to consult with an attorney before signing.
- Provides the employee at least:
- 21 days to consider the agreement before signing and an additional 7 days to revoke if the termination is not part of an exit incentive or other employment termination program (including group layoffs); or
- 45 days to consider the agreement before signing and an additional 7 days to revoke if the termination is part of an exit incentive or other employment termination program (involving two or more employees).
In either case, the agreement is not effective or enforceable until after the expiration of the revocation period. - For an exit incentive or other employment termination program, includes information about:
- any class, unit, or group of individuals included in the program;
- any eligibility factors;
- any applicable time limits;
- job titles of all individuals eligible or selected for the program;
- ages of all individuals eligible or selected for the program; and
- ages of all individuals in the same job classification or organizational unit who are not eligible or selected for the program (no employee names should be included).
For more information, see Practice Note, Age Discrimination.