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What changes, if any, should we make in our waiver agreements in light of the EEOC's recent regulations concerning ADEA waivers?
The EEOC's regulations issued in December, 2000 displayed hostility towards waiver agreements of Age Discrimination in Employment Act claims that contain covenants not to sue. Such covenants commonly require the separated employee to agree not to file suit and to pay the employer's attorneys' fees if suit is filed. The regulations state that a waiver agreement may not prohibit or discourage an employee from challenging the validity of the release. Until additional guidance from courts is obtained, employers are cautioned that the use of covenants not to sue for ADEA claims may be unenforceable.
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