The Older Workers Benefit Protection Act (OWBPA) is a U.S. law that was passed in 1990 to protect the rights of older workers in organizations with 20 or more employees. The OWBPA prohibits employers from discriminating against workers over the age of 40. It is important to note that this law applies to both private and public employers.
The OWBPA’s Protections
The OWBPA provides multiple protections against discrimination and harassment based on age which includes rights related to hiring, firing, promotions, wages, benefits, and other terms and conditions of employment. It also protects against retaliation for filing age discrimination complaints or participating in investigations or other proceedings regarding age discrimination.
The OWBPA requires employers to provide valid reasons for termination of an employee over the age of 40. In addition, employers are required to provide notice and an opportunity for affected employees to understand any imposed changes in employment before signing a waiver of their rights under the OWBPA. Employees have 45 days to consider the waiver and seven days in which to revoke it. This is in place to protect the interests of the older worker.
What Employers Need to Be Aware of
Employers must comply with the OWBPA to protect their organization from discrimination claims. Failing to comply with the OWBPA can lead to an age-discrimination claim or Employee Retirement Income Security Act of 1974 (ERISA) lawsuit, which can be both costly and time-consuming for employers. To ensure that employers comply with OWBPA regulations, they should consider conducting regular anti-discrimination training, review their employee handbook, and ensure that any waivers they provide to employees comply with the law.
Conclusion
The Older Workers Benefit Protection Act (OWBPA) is an important law governing the protection of workers over the age of 40. Businesses must be aware of the protections and requirements of the OWBPA to ensure that they are compliant and that their employees understand their rights under the law. By doing so, they will be able to avoid costly discrimination claims.