Practice Quiz

SPHR Human Resources

Category - Rewards

Start a Study Session Sign up for Question of the Day
According to the Older Worker’s Benefit Protection Act (OWBPA), individuals are prohibited from waiving their rights or claims under ADEA unless such a waiver is “knowing and voluntary.” OWBPA established nine specific criteria for ensuring that such waivers are “knowing and voluntary,” one of which requires that employers must allow employees time to consider any right-to-sue waivers that the employer offers in exchange for early retirement benefits. How many days must an employer allow?
  1. At least one week
  2. At least two weeks
  3. At least three weeks
  4. At least one week for each year of service
Explanation
Answer - C - Employers must allow at least 21 days to consider any right-to-sue waivers that the employer offers in exchange for early retirement benefits.

Key Takeaway: The OWBPA amended the ADEA to prohibit discriminating against older workers in benefit plans and defined requirements for employee waivers of their right under the act. Older employees who are part of a group termination or layoff must be given 45 days to sign the agreement. In both instances, they may revoke the agreement within 7 days.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz