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  1. Home
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  3. Release of Claims (Severance Waiver)

Legal Reference

Release of Claims (Severance Waiver)

Plain-language guide to the release of claims in a severance agreement — what a waiver gives up, what cannot be waived, and the OWBPA rules for age-claim waivers in Pennsylvania.

Type
Doctrine

Jurisdiction
PA + Federal

Citation
29 U.S.C. § 626(f) (OWBPA)

What it is

A release of claims — sometimes called a waiver or a general release — is a contract term in which a departing employee agrees not to pursue legal claims against the employer in exchange for consideration, usually severance pay. Most releases are written broadly: they purport to waive "any and all claims," known and unknown, arising from the employment relationship and its end.

A release is what the employer is actually buying. The severance number is not a gift or a reward for service; it is the price of certainty — the employer's assurance that the discrimination, retaliation, harassment, wrongful-termination, or contract claim the employee might otherwise file will never be brought. Understanding that exchange is the starting point for deciding whether the number on the table is fair.

Where it comes from

A release is a creature of contract, so ordinary contract principles govern whether it is enforceable — it must be supported by consideration (something of value the employee was not already owed) and entered into knowingly and voluntarily.

Federal law adds specific protections for age-discrimination waivers. The Older Workers Benefit Protection Act (OWBPA), 29 U.S.C. § 626(f), makes a waiver of a claim under the Age Discrimination in Employment Act valid only if it meets strict requirements, including that it:

  • is written in plain language the employee can understand;
  • specifically references ADEA rights and claims;
  • advises the employee in writing to consult an attorney;
  • gives the employee at least 21 days to consider the agreement (45 days in a group layoff or exit-incentive program), plus a 7-day period to revoke after signing; and
  • in group layoffs, discloses the job titles and ages of those selected and not selected in the decisional unit.

If those boxes are not checked, the age-claim waiver is unenforceable even if the employee signed and cashed the check. The EEOC enforces the OWBPA, and Pennsylvania courts apply the same knowing-and-voluntary standard to waivers of PHRA and other claims.

Who it applies to

Releases reach most — but not all — claims. As a general matter:

Generally can be waivedGenerally cannot be waived
Discrimination, harassment, and retaliation claims that have already accrued (Title VII, PHRA, ADEA with OWBPA compliance)Claims that arise after you sign
Wrongful-termination and breach-of-contract claimsThe right to file a charge with or participate in an EEOC/PHRC investigation
Common-law tort claims tied to the employmentUnemployment compensation eligibility (a release does not remove severance from the UC offset)
Most wage disputes that are genuinely disputedVested retirement/ERISA benefits; workers' compensation handled through that system

A release can waive your right to recover money for yourself, but federal agencies take the position that it cannot stop you from filing a charge or cooperating with an investigation. And a release does not change how severance interacts with unemployment — that is governed separately by the severance offset rule.

What it means in practice

The practical stakes are simple: once a valid release is signed and any revocation window closes, the claims it covers are gone, and the severance you accepted is all you will get. If the underlying claim — for example, a documented retaliation or quid pro quo harassment claim — is worth substantially more than the severance offered, signing without advice can mean trading a valuable claim for a fraction of its value.

This is why the consideration and revocation periods exist, and why they are worth using. A brief review before signing can identify what claims you actually hold, whether the release is enforceable, what the agreement does and does not let you keep, and whether the terms are negotiable. Employers expect counter-proposals on severance agreements; the figure in the first draft is rarely the last word.

Common Questions

If I sign a release, can I still file an EEOC or PHRC charge?

Generally yes. A release can waive your right to recover money for yourself, but federal and state agencies take the position that you cannot be barred from filing a charge of discrimination or cooperating in an investigation. A provision that tries to stop you from filing entirely is often unenforceable, even if the rest of the release stands.

Can I still collect unemployment if I signed a release?

The release itself does not decide that. Whether severance reduces your unemployment is governed by Pennsylvania's severance-offset rule, which turns on the amount and structure of the payment — not on whether you waived claims. See [Severance Agreements and Unemployment Eligibility](/legal-reference/severance-agreements-uc-eligibility/).

How long do I have to decide whether to sign?

There is no single rule for all claims, but for a waiver of **age-discrimination** claims the OWBPA requires at least 21 days to consider the agreement (45 in a group layoff) and 7 days to revoke after signing. Even where the law does not mandate a waiting period, you are usually entitled to ask for reasonable time to review.

What can't a severance release take away from me?

Typically: claims that arise after you sign, your right to file or participate in an agency charge, vested retirement benefits, workers' compensation handled through that system, and your unemployment eligibility as determined by the offset rules. Many wage protections are also difficult to waive.

Should I have a lawyer review the agreement before I sign?

It is the safest course, because a release is hard to undo. A short review can tell you what claims you are giving up, whether the release is enforceable, and whether the severance reflects the value of what you are releasing.

Related Entries


  • Severance Agreements and Unemployment Eligibility
    Plain-language guide to how a Pennsylvania severance agreement affects unemployment compensation eligibility — the offset rule, the statutory deduction, and how to…

  • Retaliation (Anti-Retaliation Provisions)
    Plain-language guide to workplace retaliation under federal and Pennsylvania law — what protected activity is, what counts as an adverse action, and…

  • Quid Pro Quo Sexual Harassment
    Plain-language guide to quid pro quo sexual harassment — what it is, how it differs from hostile work environment claims, and how…

  • Employment Claims — Statute of Limitations
    Plain-language guide to the deadlines for filing employment-discrimination, retaliation, FMLA, wage, and other employment-related claims in Pennsylvania. Federal and state windows compared.

  • Damages in Employment Cases
    Plain-language guide to the damages available in Pennsylvania employment-discrimination, retaliation, FMLA, and wage cases — back pay, front pay, compensatory, punitive, attorney's…

Last reviewed June 2026

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This page is for general informational purposes. It is not legal advice and does not create an attorney–client relationship. Pennsylvania law and its interpretation continue to evolve. For advice about a specific situation, consult a Pennsylvania-licensed attorney. Past results do not guarantee similar outcomes. Pennsylvania Rule of Professional Conduct 7.1.

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