Oubre v. Entergy Operations, Inc.
United States Supreme Court
522 U.S. 422 (1998)
After an unfavorable performance review, Dolores Oubre (plaintiff) accepted a severance package from Entergy Operations (defendant) in exchange for signing a release of claims, receiving $6,258 paid over six installments across four months; after receiving the final installment, Oubre sued under the Age Discrimination in Employment Act (ADEA), arguing her release did not comply with the Older Workers Benefit Protection Act's (OWBPA) statutory requirements for waiving ADEA claims. Entergy argued that by accepting and keeping the severance payments without returning them, Oubre had ratified the release despite its defects, and unless she repaid the money, her suit was barred; the district court agreed and granted Entergy summary judgment.
Whether an employee's acceptance and retention of severance payments under an ADEA release that fails to meet the OWBPA's statutory requirements ratifies the defective waiver and bars a subsequent age discrimination lawsuit.