Note these legal age issues when planning to layoff employees.

The Older Workers Benefit Protection Act (OWBPA) provides additional protection to employees covered by the Age Discrimination in Employment Act (ADEA). The OWBPA affects downsizing employers in two ways.

First, the OWBPA places strict requirements on an employee's release of an ADEA claim. Requirements include:

 

  1. It requires such a release to be in writing as part of the information given to the employee during the layoff.
  2. Employees must be able to easily understand the release. (the "knowing and voluntary requirement").
  3. The employee must be advised to consult with an attorney after the day of the layoff.
  4. Employees must be given a 21-day consideration period to evaluate the release
  5. The employee must be given a seven-day revocation period after signature.

Second, the OWBPA includes potentially dangerous conditions for group layoffs. If an employer offers severance and an associated release to two or more employees, and any of the employees are 40 years old or older, the release must include:

 

  1. A 45-day consideration period.
  2. Information about those eligible to participate, eligibility factors used, and job titles and ages of any employees in the same job classification or unit not eligible to participate.

Modern Business Associates frequently deals with HR issues. As a Professional Employee Organization, our clients rely on us to help them effectively deal with these kinds of topics including designing processes for terminations and council when planning to layoff employees.