On July 15, 2009, the EEOC issued a technical assistance document titled, "Understanding Waivers of Discrimination Claims in Employee Severance Agreements." This document provides guidance to terminated employees who are offered severance pay in exchange for a waiver of discrimination claims.

This document was issued in conjunction with a public hearing held by the EEOC to discuss the economic downturn and the significant increase in age discrimination charges filed with the Commission. For this hearing, the EEOC assembled a panel of speakers who spoke on various age discrimination topics including stereotyping, disparate impact, age-based policies and threats to employee benefits.

As you will see, the document contains an "Employee Checklist," advising employees of issues to consider when offered a severance agreement and explains the purpose of severance agreements, as well as the legal requirements for such agreements and releases. Also included are requirements for a valid release of age discrimination claims under the Older Workers Benefit Protection Act (OWBPA). Furthermore, the document advises employees that even if they have signed a waiver releasing their employer from claims, they can still file a charge of discrimination with the EEOC.

While not intended as such, employers might want to use this EEOC document as a useful resource when considering severance agreements and to ensure that their severance agreements and actions will withstand the scrutiny of an EEOC investigation. This technical assistance document can be found on-line at:

http://www.eeoc.gov/policy/docs/qanda_severance-agreements.html