Review severance packages to limit liability for age bias

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in Compensation and Benefits,Human Resources

When employers offer severance packages, they often ask employees to waive their rights to sue the employer. That’s a smart strategy, but small discrepancies in the agreement’s wording can make the difference between a successful severance package and a call from the EEOC.

And the EEOC has been calling a lot lately, so it’s wise to make sure your severance policies are in good working order.

6 parts of a legal waiver

To be valid, severance packages must conform to the Age Discrimination in Employment Act (ADEA) and its companion law, the Older Workers Benefit Protection Act (OWBPA). Together, the two laws dictate how you can legally ask employees to waive their rights to sue.

When asking employees to waive their rights to file age bias lawsuits, the waiver must:

  1. Be in writing and be understandable
  2. Specifically refer to the ADEA rights or claims
  3. Not ask employees to waive claims that may arise in the future
  4. Be provided in ex...(register to read more)

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