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ARTICLE · 08 MAY 1999

Failure to return Consideration does not ratify a Non-Conforming OWBPA Release

Mayer Brown
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United StatesEmployment and HR

The U.S. Supreme Court recently held that a former employee need not return or offer to return the consideration for a severance agreement that did not fully comply with the Older Workers Benefit Protection Act ("OWBPA") prior to suing her former employer under the Age Discrimination in Employment Act ("ADEA"). In Oubre v. Entergy Operations, Inc., the plaintiff was offered the option of continuing her employment and improving her performance or accepting a severance package. Under the package, Oubre received $6,258 in severance pay and was required to sign a release in which she would agree to "waive, settle, release, and discharge any and all claims, demands, damages, actions, or causes of action" that she had against the defendant employer. The employer gave Oubre 14 days to make her decision. After consulting with an attorney, Oubre decided to accept the severance package and signed the release.

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