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Older Workers Benefit Protection Act - OWBPA
In 1990, Congress passed the Older Workers Benefit Protection Act (OWBPA) which amended the Age Discrimination in Employment Act (ADEA) to safeguard older workers' employee benefits from age discrimination. Even with the OWBPA amendments, employers may observe the terms of "bona fide employee benefit plans" such as retirement, pension, or insurance plans that contain age-based distinctions, but only if the distinctions are cost-justified. Employers must pay the same amount for each benefit provided to an older worker as is paid for a younger worker. But the OWBPA does make provision for the increased costs of providing certain benefits, such as life insurance, to older workers. HR Guide to Employment Law: A practical compliance reference manual covering 14 topics, including discrimination Related articles on the Older Workers Benefit Protection Act - OWBPA Release of claims under Older Workers Benefit Protection Act The Older Workers Benefit Protection Act addresses four different release scenarios: 1) a release by an involuntarily terminated employee who has not filed an Equal Employment Opportunity Commission (EEOC) charge or lawsuit; 2) releases by employees who are involuntarily terminated under group reductions in force and who have not filed age discrimination claims or lawsuits; 3) releases in settlement of disputed claims, either pending EEOC charges or civil lawsuits; and 4) releases by employees who have voluntarily opted to sever employment under an incentive program. In some circumstances, an employee's rights under the OWBPA and the ADEA can be waived if specific criteria are met. Of utmost importance is the requirement that the waivers of potential age discrimination claims be "knowing and voluntary." State-by-state comparision of 50 employment laws in 50 states, including age discrimination Layoffs and the OWBPA Deciding which employees comprise the group or organizational unit for the OWBPA's disclosure requirements can be a logistical nightmare for an employer. Unfortunately, the OWBPA itself offers little guidance on what an appropriate definition might be. HR Executive Answers: Downsizing Toolkit The EEOC regulations, however, do offer some assistance in defining the scope of the group or organizational unit. The EEOC's stance is that employers should examine their organizational structure and decision-making process. Case law interpreting the OWBPA's requirements is somewhat limited on how to define a group or organizational unit. Much like the EEOC's regulations, however, courts have held that the definition of group or organization can include employees at multiple facilities. Thus, to determine the appropriate group or organizational unit under the OWBPA and minimize the risk of an invalid waiver, companies should look at how they are organized and how they determined the employees who would and wouldn't be included in its layoffs. Audit your policies and practices dealing with age discrimination and the Age Discrimination in Employment Act with the Employment Practices Self-Audit Workbook
Related articles on the OWBPA featured in HR Hero Line
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