• Recruitment
• Workforce Trends

• Retention Strategies
• Workplace Law

• Benefits
• Best Employers Program

Before Asking Workers to Sign ADEA Waivers and Releases

Employers frequently use release agreements to obtain waivers of rights and claims under the federal Age Discrimination in Employment Act (ADEA). Typically, in exchange for additional benefits, employers will require employees to sign a release form or agreement when they are terminated, when they accept early retirement incentives, or when they agree to leave the workforce.

At an employer’s request, an employee may agree to waive his or her rights or claims under the ADEA. However, the ADEA, as amended by the Older Workers Benefit Protection Act (OWBPA), prohibits employers from denying benefits to workers and sets out the specific minimum standards that must be met in order for a waiver to be considered “knowing and voluntary” and therefore valid. Among other requirements, a valid ADEA waiver must meet the following minimum standards:

• The waiver must be part of an agreement written in plain English.
• The waiver must specifically refer to rights or claims arising under the ADEA.
• The employee may not waive rights or claims that may arise after the date that the waiver is signed.
• The employee may waive rights or claims only in exchange for money or other benefits that exceed those to which he or she is already entitled.
• The employee must be advised in writing to consult with an attorney before signing the agreement.
• The employee must be given at least 21 days to consider the agreement before he or she signs it (or 45 days if the employee is terminated in connection with an exit incentive program or other employment termination program). In addition, the employer must provide information about who is eligible for the group layoff and the ages of individuals who are included in and excluded from the program.
• The employee must have the right to revoke the agreement within 7 days after signing it.

Resources

Age Discrimination: What Employers Need to Know
This AARP publication covers age discrimination laws, evolving issues, trends, and age equity in the workplace. The booklet is available in downloadable (pdf) format or in hard copy.

U.S. Equal Employment Opportunity Commission
Read the text and regulations of the Age Discrimination in Employment Act, and find information on litigation, enforcement procedures, and statistics on age discrimination cases and resolutions.