Older Workers Benefit Protection Act Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Older Workers Benefit Protection Act, written in plain English, along with examples of how it is used.

What is Older Workers Benefit Protection Act?

Law prohibiting employees being discriminated against by employers because of their age.

History and Meaning of Older Workers Benefit Protection Act

The Older Workers Benefit Protection Act (OWBPA) was enacted by Congress in 1990 as an amendment to the Age Discrimination in Employment Act (ADEA). It was designed to protect employees who were 40 years of age or older from discrimination in the workplace based on their age. The OWBPA requires employers to provide older workers with certain benefits and protections in exchange for waiving their right to sue for age discrimination.

Under the OWBPA, employers must provide older workers with a written description of any retirement incentive program offered, including any eligibility requirements, benefit calculations, and other details. Employers must also give older workers a reasonable period of time to consider the terms of any waiver agreements before signing them.

Examples of Older Workers Benefit Protection Act

  1. An older employee is terminated from their job and believes it was due to their age. They file a discrimination claim under the ADEA and the employer provides them with a severance package that includes a waiver of their right to sue for age discrimination. The employee must be given a reasonable amount of time to consider the waiver and it must comply with the OWBPA.

  2. An employer offers a retirement incentive program to employees who are 55 years of age or older with at least 10 years of service. The employer provides a written description of the program to eligible employees, including the calculation of benefits, and a waiver agreement that complies with the OWBPA.

Legal Terms Similar to Older Workers Benefit Protection Act

  1. Age Discrimination in Employment Act (ADEA) - a federal law that prohibits employers from discriminating against employees who are 40 years of age or older based on their age.

  2. Equal Employment Opportunity Commission (EEOC) - a federal agency responsible for enforcing federal employment discrimination laws, including the ADEA and the OWBPA.

  3. Waiver Agreement - a legal document in which an employee gives up their right to sue their employer in exchange for certain benefits or considerations.