Employment Litigation · Primary-source case analysis
Oubre: A Defective OWBPA Release Did Not Bar the ADEA Claim
Oubre v. Entergy Operations, Inc. arose after an employee signed a termination agreement releasing claims, received severance installments, and later sued under the ADEA without first returning the money.
Congress imposed specific safeguards for an ADEA waiver
The OWBPA requires a knowing and voluntary waiver that satisfies enumerated conditions, including clear language, specific reference to ADEA rights, consideration, written advice to consult counsel, and required consideration and revocation periods.
The agreement omitted mandatory protections
Oubre’s release did not comply with several statutory requirements. Because the employer did not secure a waiver meeting the OWBPA, the release could not extinguish the federal age-discrimination claim.
Retention did not cure the statutory defect
The employer argued that keeping the severance ratified the release or required tender back before suit. The Court rejected those contract doctrines where they would defeat Congress’s strict waiver regime.
The ADEA claim could proceed without pre-suit tender
The Court reversed the judgment barring suit. Issues concerning restitution, setoff, or recovery of consideration were distinct from whether a compliant ADEA waiver existed.
Key takeaways
- Audit every ADEA release against each OWBPA requirement before signature.
- Give the employee the full statutory consideration and revocation periods.
- Document advice to consult counsel and the consideration beyond existing entitlement.
- Analyze tender, restitution, and setoff separately from waiver enforceability.
Discuss the procedural record
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