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 waived | Generally 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 claims | The right to file a charge with or participate in an EEOC/PHRC investigation |
| Common-law tort claims tied to the employment | Unemployment compensation eligibility (a release does not remove severance from the UC offset) |
| Most wage disputes that are genuinely disputed | Vested 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.