Plain-words guide

The 21-day rule, the 45-day rule, and the 7-day rule — in plain words

One federal law sets the three clocks that govern most severance signings for workers 40 and older: the Older Workers Benefit Protection Act (OWBPA), the part of the age-discrimination law (ADEA) found at 29 U.S.C. § 626(f). Here is what it actually requires — the whole list, because the law's list is the checklist.

The three clocks

21 days — to consider an individual agreement before signing. 45 days — when the agreement is part of a program covering a group or class of employees (nearly every layoff of two or more people). 7 days — after signing, to change your mind (the law calls it revocation); the agreement does not take effect until the 7 days run out, and the right cannot be shortened or signed away. Days are calendar days, counted from the day the final terms are in your hands.

The rest of the list (this is the strict part)

The Supreme Court held in Oubre v. Entergy Operations (1998) that these requirements are strict: a release that misses them does not block an age-discrimination claim, and the worker does not have to return the severance money before challenging it. The full list an agreement must satisfy:

Written so the average eligible worker can understand it
Names the age-discrimination law (the ADEA) specifically
Does not ask you to give up claims that arise after you sign
Pays you something beyond what you were already owed
Advises you, in writing, to consult a lawyer
Gives the 21 or 45 days — and restarts the count if the terms materially change
Gives the 7 days to change your mind after signing
In a group program: comes with the disclosure of the group, the eligibility factors, the time limits, and the titles and ages of those picked and the ages of those not picked

What the law does not do

It does not require severance pay at all, set an amount, or protect workers under 40. It does not stop you from signing early if you truly choose to. And it governs the waiver of age claims — other claims (wage claims, discrimination on other grounds) carry their own rules, which is one reason the red-flag situations belong with a lawyer. Run your dates in the checker; run the list against your paper with the kit's audit.

Primary sources: 29 U.S.C. § 626 · 29 C.F.R. § 1625.22 · EEOC explainer.

Go deeper

Included in the $49 SeveranceDecoded Kit

The clause-by-clause decoder — every clause in plain words: what it means, what to look for, the exact questions to raise
The paperwork audit (the legal checklist) — every item the law names for workers 40+, checked against your documents
The group layoff list audit (Exhibit A) — titles and ages of who was picked and who was not, checked line by line. No other tool does this
The negotiation playbook — what companies actually move on (money, dates, stock deadlines, the non-compete, your reference) and the words that move them
Ready-to-send scripts: asking for more time, asking for changes, and the change-your-mind letter (revocation)
The red-flag page — the short list of facts that mean a lawyer's paid hour is worth it, and how to find one who does this daily

Get the SeveranceDecoded Kit — $49

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