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Older Workers Benefit Protection Act (OWBPA)
The Older Workers Benefit Protection Act of 1990 (OWBPA) amended the Age Discrimination in Employment Act (ADEA) to prohibit employers from discriminating against older workers by denying certain employee benefits to them. Related articles on the OWBPA 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." Regarding restructuring and reduction in force (RIF) programs and early retirement plans, the OWBPA requires employers to provide information about the ages of both discharged and retained employees to those who are considering releasing their age claims. 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. The Equal Employment Opportunity Commission's (EEOC) regulations, however, do offer some assistance in defining the scope of the group or organizational unit. The commission'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, the individual company should look at how it's organized and how it determined the employees who would and wouldn't be included in its reduction in force.
Related articles on the OWBPA from the State Employment Law Letters
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