In 1990 Congress enacted the Older Workers Benefit Protection Act (OWBPA) out of concern that employees terminated as part of a Reduction in Force (RIF) did not fully understand the rights they were giving up in exchange for the payment of severance benefits. Under OWBPA, a severance agreement entered into with a terminated employee over age 40 is not valid unless the agreement contains certain provisions. Among other things, the release is supposed to be written in easy to understand language rather than legal jargon; it must advise the employee to seek advice from an attorney; it must allows the employee adequate time to consider whether to sign the release (21 to 45 days, depending upon how many employees are part of the RIF); and, in the event the employee changes his mind after signing, the employee has seven days to revoke the agreement. If the release does not comply in every respect, it is not valid, and an employee who signed and accepted the severance payments may still sue for age discrimination under the federal Age Discrimination is Employment Act (ADEA). An employee who sues may not even have to return the money received as part of the severance agreement.
Continue Reading Are You Facing a Reduction in Force? Make Sure the Release is Valid or You May Pay Severance and Still Get Sued for Age Discrimination.
ADEA
Eighth Circuit Once Again Reviews Age Discrimination Burden of Proof–This Time Under ICRA
By Patrick Smith on
Posted in Age Discrimination, Litigation and Trials
Age discrimination cases tried in the Southern District of Iowa continue to generate controversy over how juries should be instructed about the plaintiff’s burden of proof. First it was Gross v. FBL Financial Services, Inc., tried in the Southern District and ultimately decided by the U.S. Supreme Court in June 2009. Then it was …
An Interesting Interview with Jack Gross
By Patrick Smith on
Posted in Age Discrimination, U.S. Supreme Court
Des Moines Register columnist Marc Hansen writes about an interview he had with Jack Gross, the plaintiff in Gross v. FBL Financial, Inc., decided by the U.S. Supreme Court last June. Mr. Gross was in Washinton, DC last week to testify before the Senate Judiciary committee that is considering amendments to the ADEA that would effectively overrule the …