Over 40 and Got a Severance Agreement in LA? You Have Extra Legal Protections

If you're 40 or older and your employer just handed you a severance agreement, you have protections that younger workers don't. Congress passed the Older Workers Benefit Protection Act specifically because companies were pressuring older employees into signing away their age discrimination rights without understanding what they were doing. The law is on your side. Here's how.

The OWBPA Requirements

The Older Workers Benefit Protection Act sets strict rules for how an employer must handle severance agreements with employees aged 40 and older. If the agreement asks you to waive age discrimination claims (and almost all of them do), the employer must comply with every one of these requirements. If they don't, the age discrimination waiver may be unenforceable.

21 days to consider. For individual terminations, you must be given at least 21 days to review the agreement before signing. This is a minimum. You can negotiate for more time.

45 days for group layoffs. If you were let go as part of a reduction in force involving multiple employees, the review period extends to 45 days. Your employer must also provide you with a written disclosure showing the job titles, ages, and selection criteria for everyone who was and wasn't selected for the layoff. This information helps you evaluate whether age was a factor.

7-day revocation period. After you sign, you have 7 calendar days to change your mind and revoke your acceptance. The agreement does not become effective until this period expires. This means the employer cannot release your severance payment until day 8.

Written advice to consult an attorney. The agreement must include language specifically advising you, in writing, to consult with an attorney before signing. This isn't optional phrasing. It's a requirement.

Clear, understandable language. The waiver must be written in a way that you can understand. Legal jargon that obscures what you're agreeing to can undermine the waiver's enforceability.

No waiver of future claims. The release can only cover claims that have already arisen. Your employer cannot make you waive age discrimination claims based on conduct that happens after you sign.

What Happens If They Don't Follow the Rules

Here's the part that really matters. If your employer fails to comply with any OWBPA requirement, the age discrimination waiver in the severance agreement may be unenforceable. Courts have ruled on this consistently.

What does that mean in practice? You could potentially sign the agreement, accept the severance payment, and still file an age discrimination lawsuit. The employer would have paid you severance and gotten nothing in return on the age discrimination front.

This is powerful leverage. If your agreement doesn't comply with the OWBPA and you have a viable age discrimination claim, your employer needs to fix the agreement and likely sweeten the deal to get a valid release.

Signs of Age Discrimination

You might have an age discrimination claim if:

You were performing well and were suddenly let go. You were replaced by someone significantly younger. Your department "restructured" but the only people let go were over 40. You received negative performance reviews only after a younger manager took over. You were passed over for promotions that went to younger, less experienced colleagues. Comments were made about your age, energy level, or being "set in your ways."

Age discrimination doesn't require someone to say "you're too old." It can be inferred from patterns, timing, and the employer's stated reasons not holding up to scrutiny.

California's Additional Protections

On top of federal protections, California's Fair Employment and Housing Act provides strong age discrimination protections. FEHA covers employers with as few as 5 employees (the federal ADEA requires 20). FEHA also allows for emotional distress damages and, in cases of malice or oppression, punitive damages.

The combination of federal OWBPA/ADEA protections and California's FEHA gives employees over 40 in Los Angeles one of the strongest sets of legal protections available to any group of workers. If you have a viable age discrimination claim, it has real monetary value.

How This Changes Your Severance Negotiation

Knowing these protections changes the conversation with your employer. Your leverage includes:

The OWBPA compliance issue (if they've cut corners on the requirements). The value of your age discrimination waiver (if there are signs of age-based termination). The additional review time you're entitled to (use all 21 or 45 days if you need them). The 7-day revocation period (you can sign, then change your mind if new information emerges).

Don't rush. The OWBPA exists specifically to give you time and information. Use both.

Talk to an Attorney Who Knows These Rules

OWBPA compliance issues are technical. Whether the disclosures were adequate, whether the timing was proper, whether the language meets the "plain language" requirement. These are things an experienced Los Angeles employment attorney can evaluate quickly and use to your advantage.

If you're over 40, in Los Angeles or Southern California, and facing a severance agreement, contact our team for a free consultation. We'll check OWBPA compliance, evaluate your age discrimination risk, and advise you on the best path forward.