Common use of Restitution, recoupment, or setoff Clause in Contracts

Restitution, recoupment, or setoff. (1) Where an employee successfully challenges a waiver agreement, cov- enant not to sue, or other equivalent arrangement, and prevails on the mer- its of an ADEA claim, courts have the discretion to determine whether an em- ployer is entitled to restitution, recoupment or setoff (hereinafter, ‘‘re- duction’’) against the employee’s mon- etary award. A reduction never can ex- ceed the amount recovered by the em- ployee, or the consideration the em- ployee received for signing the waiver agreement, covenant not to sue, or other equivalent arrangement, which- ever is less. (2) In a case involving more than one plaintiff, any reduction must be ap- plied on a plaintiff-by-plaintiff basis. No individual’s award can be reduced based on the consideration received by any other person.

Restitution, recoupment, or setoff. (1) Where an employee successfully challenges a waiver agreement, cov- enant not to suexxx, or other equivalent arrangement, and prevails on the mer- its of an ADEA claim, courts have the discretion to determine whether an em- ployer is entitled to restitution, recoupment or setoff (hereinafter, ‘‘re- duction’’) against the employee’s mon- etary award. A reduction never can ex- ceed the amount recovered by the em- ployee, or the consideration the em- ployee received for signing the waiver agreement, covenant not to suexxx, or other equivalent arrangement, which- ever is less. (2) In a case involving more than one plaintiff, any reduction must be ap- plied on a plaintiff-by-plaintiff basis. No individual’s award can be reduced based on the consideration received by any other person.