Maxine was offered an early retirement incentive in exchange for her signing a w
ID: 432606 • Letter: M
Question
Maxine was offered an early retirement incentive in exchange for her signing a waiver of any Age Discrimination in Employment Act claims she might have related to the early retirement plan. She is presented with the offer on June 9, 2014, and told that she has until June 13, 2014, to accept the offer and sign the waiver. She signs the waiver on June 11, 2014, but she later wishes to bring an Age Discrimination in Employment Act claim based on an aspect of the early retirement plan that is unfavorable to her. Will the waiver preclude her claim? Explain.
Explanation / Answer
No, the waiver will not preclude Maxine’s claim. While offering the waiver, the employer needs to follow certain rules. Employer should advice in writing to consult an attorney before signing the agreement and provide at least 21 days for the employee to understand the agreement. It is 45 days if the waiver is in connection with exit incentive programs and other employment termination programs. Here Maxine is offered early retirement incentive to waive off her ADEA claims related to early retirement plans and hence the employer must provide 45 days to meet an attorney and understand and sign the waiver. But the required time as per rule was not provided as she was told to sign the waiver within 4 days from June 9 to June 13. Moreover the employer should give at least 7 days for the employee after signing the waiver to revoke it. As the employer did not follow the rules, the waiver would become invalid in front of the court and it will not preclude Maxine’s Age Discrimination in Employment Act claim.