Understanding ADEA Severance Agreements: Key Provisions and Implications

The Age Discrimination in Employment Act (ADEA) is one of the most important laws providing your legal rights if you are age 40 or older and have lost your job. Often, an individual terminates employment by entering into a severance agreement with his or her employer. Why would you want to know about the implications of such an agreement? It’s actually empowering to understand these legal documents.

If you are a writer or entrepreneur, you can benefit from knowing what you are signing. You may be in a position where you want a severance agreement with your employer. You may be asked to sign other contracts in the course of your business. Or, you may merely be given a complex contract to transfer ownership of creative or scientific work. And, certainly you may have other complex agreements that come up based on the nature of your creative/entrepreneurial work.

Fortunately, the basics of severance agreements apply to many agreements professionals sign, and this knowledge can be empowering. You will be able to take charge of rather significant parts of your career and business, based on savvy and understanding of how legal documents can work. You will not be at a disadvantage as other business professionals deal with contracts and business negotiations.

Several provisions are often included in all severance packages. From there, the options for negotiation become wide and varied. The key takeaways are to understand that many of your options exist, and that knowing about them can help you prepare for business negotiations.

It’s important to be aware of some common misconceptions and pitfalls. First, just because you don’t have employment discrimination claims now doesn’t mean you won’t in the future. Waiving your rights to those claims may be something you want to consider, but at least consult with an attorney.

Second, it’s a myth that documents must be signed “as is” even if the other contracting party demands it. Even when business is good, it’s common for a new business owner to sign a lease as-is and regretting it later. A review from a lease attorney can save you big money, just like having a real estate litigation attorney take a second look at a new or used-home transaction can save you thousands of dollars.

Finally, know that there are options and rights available to you that can help you negotiate a better deal and empower you in your work.

Real-Life Examples

One might wonder what this looks like in practice, so let me offer a real-life example. Assume the writer of this blog post has been offered a severance agreement from an employer. Normally, the employer will ask that the writer agree to certain conditions, such as the following: From there, the writer’s lawyer has several options that might help. The writer can: I hope that this real-life example shows you that legal literacy is powerful and can truly enhance your quality of life. You can expand your creative freedom by knowing how to understand a severance agreement. An attorney can be helpful to find out what your options are and choose the best path forward in business negotiations.

Your Knowledge Matters

More chances to express your creativity and freedom will come once you’ve entered into an agreement that works for you. Whatever your business or writing may be, lawyer Daniel DiPietro recommends knowing your rights under comprehensive ADEA severance agreements, and otherwise learning the law.

It’s not just empowering to know that there are solutions out there for you, but it’s also enjoyable. There is for me, at least, a real sense of creativity that comes with knowing how to empower my choices in life.