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    EPAP Legal Framework

    Legally binding contractual protections ensuring dignified workforce transformation with enforceable guarantees for employees and sustainable AI implementation for employers.

    Last Updated: October 2025

    Legal Framework Overview

    The Employee Protection Assurance Program (EPAP) is not a policy statement or corporate promise, it is a legally binding contractual agreement between employer and employee, structured to protect both parties through the AI transformation process. This framework establishes enforceable obligations, defines clear terms, and provides mechanisms for dispute resolution and enforcement.

    EPAP agreements are designed to withstand legal scrutiny, comply with employment law across jurisdictions, and provide genuine protection that gives employees security while enabling organizations to pursue necessary technological evolution.

    Core Legal Components

    1. Employment Continuity Agreement

    The foundation of EPAP is a binding employment continuity agreement that supersedes standard at-will employment provisions. This agreement establishes:

    • • Guaranteed employment continuation for a specified period (typically 5 years)
    • • Defined transition pathways when AI automation affects current role
    • • Income protection clauses that survive role elimination
    • • Mutual obligations for both employee participation and employer support
    • • Termination provisions that trigger income guarantee regardless of cause

    2. Income Guarantee Provisions

    The income guarantee is structured as a contractual payment obligation, not a severance package or voluntary benefit. Key provisions include:

    • • Base compensation amount calculated from current salary at program enrollment
    • • Payment schedule (monthly, bi-weekly, or lump sum options)
    • • Cost-of-living adjustment provisions tied to CPI or other indices
    • • Benefits continuation requirements (health insurance, retirement contributions)
    • • Tax treatment clarification and withholding obligations
    • • Assignment and transferability restrictions
    • • Acceleration clauses for full payment under specific circumstances

    3. Training and Transition Obligations

    Both parties assume specific obligations regarding skill development and role transition:

    Employer Obligations:

    • • Provide access to approved training programs and materials
    • • Allocate dedicated work time for skill development
    • • Cover all training costs without employee reimbursement requirements
    • • Offer internal transfer opportunities before external placement
    • • Provide career counseling and placement assistance

    Employee Obligations:

    • • Participate in good faith in provided training programs
    • • Complete required training milestones within reasonable timeframes
    • • Consider and interview for suitable alternative positions
    • • Maintain professional conduct throughout transition
    • • Provide reasonable notice if declining alternative employment

    4. AI System Maintenance Requirements

    A unique feature of EPAP is the requirement that employees whose roles are automated continue providing value through AI system maintenance and optimization:

    • • Defined scope of maintenance responsibilities (monitoring, quality assurance, training)
    • • Maximum time commitment requirements (typically 10-20 hours per month)
    • • Performance standards and evaluation criteria
    • • Remote work provisions and scheduling flexibility
    • • Equipment and resource provision by employer
    • • Liability protections for good-faith participation

    5. Dispute Resolution and Enforcement

    Clear mechanisms for addressing disagreements and enforcing obligations:

    • • Multi-tier dispute resolution process (internal review, mediation, arbitration)
    • • Defined timelines for each dispute resolution stage
    • • Arbitration provisions with neutral arbitrator selection process
    • • Cost allocation for dispute resolution procedures
    • • Injunctive relief provisions for breaches of material terms
    • • Attorney's fees provisions for prevailing party
    • • Class action waiver and individual arbitration requirements

    Legal Safeguards for Employees

    Independent Legal Review

    Every EPAP agreement includes a mandatory independent legal review period. Employees receive:

    • • Minimum 21-day review period before signing
    • • Written advisement to consult with independent legal counsel
    • • Employer-funded legal consultation (up to specified amount)
    • • Right to negotiate specific terms within framework parameters
    • • 7-day revocation period after signing

    Enhanced Protections

    EPAP agreements include protections beyond standard employment contracts:

    • • Non-retaliation clauses for program participation
    • • Confidentiality protections for individual agreement terms
    • • Prohibition on adverse action due to age, disability, or protected class status
    • • Successor employer obligations if organization is sold or merged
    • • Personal guarantees from key executives for payment obligations

    Financial Security Measures

    To ensure income guarantee obligations can be met:

    • • Escrow funding requirements for income guarantee obligations
    • • Insurance policy requirements covering program obligations
    • • Priority creditor status in bankruptcy proceedings
    • • Regular financial reporting requirements to program participants
    • • Third-party verification of funding adequacy

    Employer Protections and Benefits

    Release of Claims

    In exchange for EPAP protections, employees provide comprehensive releases:

    • • Waiver of wrongful termination claims related to automation
    • • Release of discrimination claims based on role elimination
    • • Agreement not to challenge AI implementation decisions
    • • Acknowledgment that automation is legitimate business necessity
    • • Covenant not to sue for breach of implied contract

    Predictable Cost Structure

    EPAP provides cost certainty compared to traditional workforce reduction approaches:

    • • Fixed, calculable obligations replacing uncertain litigation costs
    • • Tax-advantaged structuring as ordinary business expense
    • • Elimination of severance negotiation costs
    • • Reduction in unemployment insurance premium increases
    • • Avoidance of WARN Act and similar regulatory compliance costs

    Operational Flexibility

    The framework preserves employer's ability to manage business effectively:

    • • No restrictions on AI implementation timeline or scope
    • • Freedom to reorganize and restructure as business needs evolve
    • • No obligation to preserve specific roles or departments
    • • Ability to adjust workforce size for market conditions
    • • Protection of confidential business information and trade secrets

    Legal Implementation Process

    Phase 1: Framework Development (4-6 weeks)

    TitanWave coordinates with your employment law counsel to customize the EPAP framework to your organization's specific needs, jurisdiction requirements, and business model. We ensure compliance with federal, state, and local employment laws while preserving core program protections.

    Phase 2: Legal Review and Approval (2-3 weeks)

    Both TitanWave's legal team and your organization's counsel review the customized framework. We facilitate any necessary negotiations and ensure all parties understand obligations and protections.

    Phase 3: Employee Communication (2-4 weeks)

    Structured communication program explaining EPAP to affected employees, including individual consultations, group information sessions, and Q&A opportunities with legal counsel present.

    Phase 4: Individual Agreement Execution (4-6 weeks)

    Each employee receives their individual EPAP agreement, participates in independent legal review, and executes the agreement. TitanWave coordinates this process to ensure proper documentation and compliance with all legal requirements.

    Phase 5: Program Administration (Ongoing)

    TitanWave provides ongoing program administration support, including monitoring compliance with agreement terms, facilitating dispute resolution, coordinating training obligations, and ensuring financial obligations are properly funded and maintained.

    Attorney Coordination and Support

    TitanWave does not provide legal advice to either employers or employees. Instead, we coordinate with qualified employment law attorneys to ensure all EPAP agreements are legally sound, fair, and enforceable. Our role is to facilitate the legal process, not to replace professional legal counsel.

    We maintain relationships with employment law firms across multiple jurisdictions and can provide recommendations for qualified counsel if needed. All legal fees for framework development and employee review are included in EPAP implementation costs.

    For more information about our attorney support services, please see our Attorney Support Services documentation.

    Legal Questions About EPAP?

    For legal inquiries regarding the EPAP framework, implementation process, or coordination with your legal counsel, please contact our Legal Affairs team.

    Email: legal@titanwave.ai

    We respond to all legal inquiries within 2 business days.