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United States: Ambiguities in ADEA Waivers May Crater Releases
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20 May 2005
Article by Roxane Sokolove Marenberg, Adrianne C. Mazura, Dov Grunschlag and Charlene Wilson

Originally published May 18, 2005

Since 1990, when the Congress enacted the Older Workers Benefit Protection Act (OWBPA), waivers of age discrimination claims must contain provisions intended to ensure that individuals act voluntarily and knowingly when giving up any right or claim they might have under the Age Discrimination in Employment Act (ADEA). Employers who fail to follow waiver requirements may find that a claim they believed was settled or released is in fact alive.

The latest such instance occurred when the employer, IBM, used an overly legalistic document that combined release and covenant not to sue language. A recent opinion from the Eighth Circuit Court of Appeals - Thomforde v. International Business Machines Corp., 2005 U.S. App....
 
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