Older Workers Benefits Protection Act

In order to discourage and, possibly, sanction an employee for bringing a suit, even where he or she has signed a release, employers have historically added to the release agreement a covenant not to sue. That covenant usually includes a promise that the employee will not sue, and that, if the employee does file suit, he or she must pay the employer's defense costs in addition to his or her own attorneys' fees and costs. Recent cases have called into question the viability, utility, and even the lawfulness of covenants not to sue, such that employers may well decide to forego them when drafting releases of age discrimination claims.

15 minute read November 27, 2007 at 09:25 AM
By
Philip M. Berkowitz and Randy S. Gidseg
Older Workers Benefits Protection Act

A valid release will likely be an employer's primary defense against employee workplace claims if the employer is sued on a matter covered by the release. A release, however, will not, by itself, prevent an employee from filing a lawsuit.

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