Special Consideration Must Be Given When Drafting Separation Agreements for Employees Who Are Over 40 Years Old

/cdklawyers.com// 09/25/2011

Employers may ask departing employees to sign separation agreements. In a typical separation agreement, the employer agrees to provide additional compensation to the employee and the employee agrees not to sue the employer on any existing claims. According to Dallas employment law attorney Keith Clouse, an employer must carefully draft a separation agreement for an employee who is over the age of 40 because federal law entitles these employees to special protections.


The Older Workers Benefit Protection Act is part of the federal Age Discrimination in Employment Act and applies to a separation agreement between an employer and an employee over the age of 40 if the separation agreement requires the employee to waive rights under the Age Discrimination in Employment Act.


To be effective, the waiver must be written clearly and must specifically mention that the employee is waiving any claims arising under the Age Discrimination in Employment Act. The employee must receive consideration for this waiver in addition to any consideration the employee is already entitled to. The employee must be advised in writing to consult with an attorney and must be given twenty-one days to consider the proposed separation agreement. The separation agreement must also provide the employee with the right to revoke it within seven days after the employee executes the agreement.


For assistance in drafting separation agreements or for more information regarding the Age Discrimination in Employment Act, contact Mr. Clouse or the other Texas employment lawyers at Clouse Dunn LLP at [email protected]


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Clouse Dunn LLP

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