OWBPA: Effective Termination Date Before or After Revocation Period?

If a severance is part of a settlement arrangement that involves the OWBPA and its 7-day revocation period, be careful in determining the effective termination date and the implications of what might be called a suspended state of employment.  Here are some particulars to take into account: 

– Date of eligibility for certain benefits (e.g., unemployment, COBRA);

– Date when a former employer is obligated, under the agreement, to provide the DUA information consistent with the parties’ terms;

– Classification of the revocation period (interim?) and definition of corresponding employer/employee status and obligations (e.g., whether employee is expected to continue working;  if not, will the time be paid or unpaid if s/he revokes?);

– Alternative outcomes in the event the right to revoke is exercised or not (i.e., payroll, workers’ compensation implications);

– Overlap of employee medical leave and proscribed return-to-work date with revocation period and/or effective termination date, as well as effect on medical benefits; and

– Timing of issuance of final paycheck.

Most of these issues can be addressed by the payroll and HR departments by both employer and employee.  And for employers and attorneys, more likely than not, there’ll be just one learning curve in developing an approach that can be used in future matters.

About Maria Hanna Joseph

Maria Hanna Joseph, principal of Joseph Mediation, is an Attorney-Mediator who is highly regarded for her experience and ability to resolve employment, workplace and organizational disputes. She has served more than 2,000 matters over her 20 years as a mediator and her 29 year employment law career. With care, expedience and economy, Maria helps attorneys and parties achieve settlement in nearly every mediation. Moreover, her pragmatism and perseverance bring about purposeful settlements; products of Maria's insight and creativity, gained by her depth of experience and training. These qualities, along with her demeanor and the trust she engenders, have earned Maria a reputation for being able to manage extremely challenging circumstances and settle a wide variety of cases. Maria is available to provide services in-person or virtually (utilizing teleconference and desk-top videoconference resources) throughout Massachusetts, New England and the U.S.
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