Employment Litigation · Primary-source case analysis

Oubre: A Defective OWBPA Release Did Not Bar the ADEA Claim

Decision: Supreme Court of the United States, No. 96-1291, decided January 26, 1998. Document: Published United States Reports opinion.

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

Discuss the procedural record

Mission X Trial Lawyers represents clients in California. Call (949) 343-9735 or email office@mcxlegal.com.