Oubre v. Entergy Operations, Inc.
522 U.S. 422, 118 S. Ct. 838, 139 L. Ed. 2d 849 (1998)
Supreme Court of the United States · January 26, 1998
What the court decided
A release that does not comply with the Older Workers Benefit Protection Act cannot waive an age discrimination claim, and the employee does not have to give the money back first in order to sue. "The OWBPA implements Congress’ policy via a strict, unqualified statutory stricture on waivers, and we are bound to take Congress at its word." The release is unenforceable "insofar as it purports to waive or release her ADEA claim ... irrespective of the validity of the contract as to other claims."
Who won
The employee won. The Fifth Circuit was reversed; her age claim went forward even though she had kept the severance payment.
Why it matters for salespeople
This is the case to know if you were over 40, signed a release, and later learned the agreement broke the OWBPA rules. You do not have to return the money to challenge it, and an agreement cannot require you to.
Key passage: 522 U.S. 422 at 427-28.
Read the decision (PDF) Marked with official reporter pages for citation.
Source of the text: Library of Congress (official United States Reports, bound volume 522) — https://tile.loc.gov/storage-services/service/ll/usrep/usrep522/usrep522422/usrep522422.pdf. This page summarizes the decision in plain language; the court’s own words are in the PDF above.