Age Discrimination in Employment Act
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The Age Discrimination in Employment Act (ADEA) applies to employers with 20 or more
employees and protects employees and applicants who are 40 years of age or over from
discrimination in the workplace because of their age. If an employee is claiming they were
replaced by or passed over for hire by a younger employee, they must show that the younger
employee was substantially younger. The courts are not in consensus about how many years
younger constitutes substantially younger, but the minimum number of years required by any
court is three years. An employer can avoid liability for age discrimination when they can
establish a bona fide occupational qualification (BFOQ) which requires an employee to be
younger than the employee claiming age discrimination.
Older Workers Benefit Protection Act
When an employer is considering laying off employees that are 40 or over, they should consider
having the employees sign a waiver of their ADEA claims. Such waivers are governed by the
Older Workers Benefits Protection Act (OWBPA) and must be drafted and executed according to
that law.
The basic requirements of a OWBPA release are:
- it must be written in a manner calculated to be understood.
- it must specifically refer to rights or claims protected under the ADEA;
- it must only address rights or claims which arose on or before the date
it is executed
- the employee must be advised in writing to consult with an attorney;
- the employee must be given at least 21 day to consider signing the
release before executing them.
- the employee must be given 7 days after signing it to revoke it.
If the release is used in connection with a group program the employer must also inform the
employees of:
- any class, unit, or group covered by the program;
- the eligibility factors for the program; and
- any time limits applicable to the program.
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