Can employer offer an early retirement to employees 60 years and over?

[joe40]

What is the name of your state (only U.S. law)? California

Can an employer offer an incentive program to employees 60 years an over in age for them to voluntary quit and get a package? Is it legal to base it on age? My parents both in their mid 60's got this "offer" and according to them during the HR meeting they were told they no longer needed that much work force and they wanted a "more efficient" workforce. Reading the package info it looks like they get a severance package of 26 weeks pay but they waive their rights to take any legal action against the company.

 

[xylene]

They should hire a lawyer.

 

[cbg]

This is not illegal on its face; details matter. I agree that having their own attorney review the package would be wise.

 

[LdiJ]

What is the name of your state (only U.S. law)? California

Can an employer offer an incentive program to employees 60 years an over in age for them to voluntary quit and get a package? Is it legal to base it on age? My parents both in their mid 60's got this "offer" and according to them during the HR meeting they were told they no longer needed that much work force and they wanted a "more efficient" workforce. Reading the package info it looks like they get a severance package of 26 weeks pay but they waive their rights to take any legal action against the company.

I agree with the other responses you received, but when a company wants to reduce their workforce its quite common for them to offer an early retirement incentive to older employees.