They might sound like the same thing. They’re actually quite different, each with unique demands. The one commonality is this: if they’re not executed correctly, there can be very serious and expensive ramifications. There are distinct legal requirements, especially if someone is 40 or older. In a worst-case scenario, you can end up paying a former employee money—and they can still sue your business. The Older Workers Benefits Protection Act is a federal law, and being in compliance is critical. As always, being prepared and ironing out the details at the beginning can be prevent conflict and expense down the road.