When an employer offers a departing employee a separation agreement, one of the employer’s main motivations is to obtain a release of the employee’s potential legal claims. Under the federal Older Workers Benefit Protection Act, when an employee 40 years old or older agrees to release age discrimination claims, that employee is entitled to a seven-day period to revoke their agreement to the waiver. 

Otherwise, employees typically have no right to revoke their agreement to waive claims. Once they sign the agreement, it is enforceable … except in Minnesota.

Minnesota law provides employees who waive potential Minnesota Human Rights Act (MHRA) claims 15 days to rescind their agreement. This right does not apply only to age discrimination claims and does not apply only to employees age 40 and older. Any Minnesota employee who is offered a separation agreement to waive potential MHRA claims must be given 15 days to rescind their signature. Moreover, the separation agreement must inform the employee of their right to rescind the MHRA waiver within 15 days.

Employers with Minnesota employees should review their separation agreements and ensure that they provide 15 days to rescind waiver of potential MHRA claims. If an agreement does not contain notice of the 15-day rescission period, the employer risks a ruling that the MHRA claim waiver is ineffective.