Employers can offer severance payments to older workers they plan to terminate in exchange for a release of age discrimination claims. But the severance agreement must comply with the Older Workers Benefit Protection Act (OWBPA) in order to stick.
To comply with OWBPA, the agreement must be written clearly and simply enough that the employee can understand what he is signing. That means keeping it free of legal mumbo jumbo.
Recent case: Thomas Ridinger worked for Dow Jones & Company until he was offered a severance package in exchange for agreeing not to file a lawsuit against the company. He sued anyway, arguing that the agreement didn’t comply with the OWBPA.
The court dismissed Ridinger’s lawsuit, reasoning that there was nothing complicated in the agreement, which used common, everyday language. (Ridinger v. Dow Jones & Company, No. 10-1771, 2nd Cir., 2011)
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/18509/use-plain-english-in-your-severance-agreements "
- How not to handle FMLA leave (Hint: Following the law isn't optional!)
- Vague 'unfairness' complaints aren't protected activity
- Keeping your customers after your employees go to a competitor
- When filing lawsuits, employees not entitled to 'Two bites at the apple'
- Contractor arbitration pact doesn't always preclude court