Age Discrimination. Use of Waivers by Large Companies Offering Exit Incentives to Employees. Report to Congressional Requesters.

A study reviewed Fortune 100 companies' use of waivers that release employers from certain legal claims under the Age Discrimination in Employment Act of 1967 in special short-term exit incentive programs offered to employees. These programs were designed to encourage employees' early departure through some form of financial incentive. Telephone interviews were conducted with company officials at a random sample of 71 of the 1987 Fortune 100 industrial companies. Findings indicated that about 80 percent of Fortune 100 companies sponsored an exit incentive program at least once during 1979 through 1988, according to company officials. About 30 percent of these companies required their employees to sign a waiver as a condition for receiving enhanced benefits. Overall, waiver usage increased during the years 1985-1988 and was highest in 1987 and 1988, when 35 percent of companies with exit incentives used them. Officials from companies that required waivers said such a practice protected the company from lawsuits. Companies not using waivers contended that they were unnecessary because of the voluntary nature of exit incentive programs and the adverse effect that waivers would have on employee relations. (Appendixes include interview and data verification procedures and companies' reasons for waiver choices.) (YLB)