[co-author: Christopher Shur - Law Clerk]
On January 14, 2021, the U.S. Equal Employment Opportunity Commission (“EEOC” or “Commission”) issued a Commission Opinion Letter concluding that the group termination program disclosures mandated by the Age Discrimination in Employment Act of 1967 (“ADEA”), as amended by the Older Workers Benefit Protection Act (“OWBPA”), are not
required to include employees working outside the United States who are not U.S. citizens but who otherwise might be considered to be part of the termination program’s “decisional unit.”
Relevant ADEA and OWBPA Provisions
When conducting a group termination program that offers employees severance in exchange for a release of potential federal age discrimination claims, the OWBPA imposes specific requirements to obtain a valid and enforceable release of ADEA claims.
Thursday, January 14, 2021
For years, U.S. employers with international operations have struggled to understand their obligations under the Older Workers Benefit Protection Act (OWBPA) when implementing reductions-in-force and group layoffs. In a
January 14, 2021, formal opinion letter, the Equal Employment Opportunity Commission (EEOC) clarified that non-U.S. citizen employees working abroad may be excluded from OWBPA disclosures because such individuals are not “employees” for purposes of the Age Discrimination in Employment Act of 1967 (ADEA). Significantly, this opinion letter may be relied upon by employers and constitutes binding legal authority in any proceedings brought against an employer.
Under the OWBPA, which amended the ADEA, an employee may not waive any rights provided by the ADEA unless the waiver is “knowing and voluntary.” 29 U.S.C. § 626(f). When an employer requests such a waiver in the context of a group termination program, the OWBPA requ
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WASHINGTON – The U.S. Equal Employment Opportunity Commission (EEOC) announced today that the Commission approved a formal opinion letter in response to a request asking for clarity regarding whether employees who are not U.S. citizens and work outside of the United States for American employers (or foreign firms controlled by American employers) are required to be included in disclosure requirements pursuant to provisions of the Older Workers Benefit Protection Act (OWBPA), which amended the Age Discrimination in Employment Act of 1967 (ADEA).
The opinion letter was approved by vote of the Commission on Jan. 13, 2021 as a written interpretation or opinion of the Commission under Section 7 of the ADEA and the Commission’s Regulations, including 29 C.F.R. § 1626.21. The opinion letter concludes that employers subject to the requirements of the ADEA are not required to include in OWBPA disclosures employees working o