Over 40 and Offered Severance? The 21-Day, 45-Day and 7-Day Rules

The Core Rule: Time to Think and Time to Change Your Mind

• 21 days to consider

  For a one-person termination, the employer must give you at least 21 days to decide whether to sign. You may sign sooner if you choose, but the employer cannot pressure you into it.

• 45 days in a group program

  If you are part of an exit incentive or other group layoff program, the period is at least 45 days.

• 7 days to revoke

  After you sign, you have 7 days to cancel. The agreement is not effective or enforceable until those 7 days pass, and the employer cannot shorten the period.

• Changes restart the clock only in some cases

  A material change to the offer can restart the review period unless both sides agree in writing that it does not. Ask for the dates in writing.

What the Agreement Must Say to Be Valid

A waiver of age claims is valid only if it is knowing and voluntary. Under the federal statute, among other things, it must be written in a way you can understand, refer specifically to rights under the Age Discrimination in Employment Act, and not waive claims that arise after you sign. It must also give you something of value beyond what you already had a right to, and it must tell you in writing to consult a lawyer first. Read the full list in 29 U.S.C. 626(f).

Group Layoffs: The Disclosure Requirement

When the offer is part of a group program, the employer must also give you written information at the start of the review period. That information has to cover the class or group of workers covered, the eligibility factors, the time limits, the job titles and ages of everyone selected, and the ages of workers in the same unit who were not selected. This data can show whether older workers were picked for layoffs more often than younger ones, which is why it matters even if you plan to sign.

What a Waiver Cannot Take Away

• The right to file a charge

  No agreement can bar you from filing a charge with the EEOC or from taking part in its investigation. A waiver can limit what money you may recover, but it cannot silence the agency. See the EEOC guidance on <a href="https://www.eeoc.gov/laws/guidance/waivers-discrimination-claims-employee-severance-agreements" class="text-primary underline" target="_blank" rel="noopener noreferrer">waivers in severance agreements</a>.

• Future claims

  You cannot waive claims based on events that happen after you sign.

• Rights you already hold

  The employer must give you something extra for the waiver. Pay you were already owed, such as earned wages, does not count.

If the Employer Broke the Rules

If the review period was too short, the 7-day revocation period was missing or the group disclosures were never given, a court may find that the waiver of age claims does not hold. That does not mean you can keep the money and sue, since other terms can matter, so get the agreement reviewed before you act. Read the severance red flags guide and the guide on whether to sign or negotiate.

Practical Steps Before You Sign

• Write down your dates

  Note the day you received the offer, the deadline and the day you signed. Keep the envelope or email.

• Ask whether it is a group program

  If others were let go at the same time, request the written disclosure of job titles and ages.

• Compare to what you are owed

  Check unpaid wages, vacation and benefits first, since the extra payment must be more than those.

• Look for age signals

  Comments about retirement, energy or being a culture fit may matter. Learn more in our <a href="/blogs/age-discrimination-at-work-know-your-rights-under-adea" class="text-primary underline">age discrimination guide</a>.

• Get a review

  Your lawyer can spot missing terms and may be able to negotiate better pay or a neutral reference.