In tough economic times, employers may ask certain employees to take early retirement packages. Oftentimes such a package contains a waiver whereby an employee releases any claims the employee may have against the employer. But if an employer seeks a waiver of a possible age claim, the employer must comply with the specific requirements for waivers of claims arising under the federal Age Discrimination in Employment Act.
First, the waiver must be written in a way calculated to be understood by the employee; an employer should avoid using “legalese.” Second, the waiver must specifically refer to rights or claims arising under the ADEA. Third, the waiver must advise the employee in writing to consult with an attorney before accepting the agreement. Further, the employer must provide the employee with at least twenty-one days to consider the offer and must give the employee seven days to revoke the agreement. Additionally, the waiver must be supported by consideration. Finally, the waiver cannot require the employee to waive any rights and claims that may arise after the date on which the employee signs the agreement.
To speak with an employment law attorney about drafting waivers of age claims or about another employment law matter, please contact the employment lawyers at Clouse Dunn Khoshbin LLP..
