2. Why does my severance agreement provide that I have 21 days to consider the employer's offer and 7 days to revoke?
Because you are "old."
Back in 1989, Congress decided that individuals who are 40 years of age and older need extra protections when their employers offer severance agreements. The Older Workers Benefit Protection Act provides that if an employer wants to obtain a valid age discrimination release, under federal law, the release you give the employer in a severance document must be "knowing and voluntary." In order to meet that standard, an employer must give you 21 days to consider its offer. You can waive any part of this period by simply signing the severance agreement.
And, since you are "old" the employer must also provide you the opportunity to reconsider and revoke your acceptance of the agreement. The 7-day revocation period is NOT waivable by either
you or your employer. Your severance agreements is probably structured so that you receive no benefit or payment until after the revocation period has run and the employer is sure that you
no can longer change your mind.
Your employer is also required to advise you, in writing, that you have the right to consult with a lawyer before signing the proposed release. (Congress apparently felt that in light of your age, the idea of seeing an attorney would not have occurred to you.)
In some circumstances, a separation agreement will provide that the employee has 45 days for consideration. This may occur, for example, if you are part of a group that is offered an exit incentive or if you are within a class of employees selected for an employment termination program. In those situations, the employer is also legally required, if it wants a valid federal age discrimination release, to provide you with the ages of your fellow employees who are, and who are not, eligible for the exit incentive or selected for the job elimination program. That requirement is designed to give you information by which you (and your lawyer) can determine whether you may be a victim of age discrimination.
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