Players with less than 4 years of accrued service time can be waived, whereas older players simply are cut or released. If a player is put on waivers, technically his contract is still in place, and another team may claim the player under the terms of that contract. If not claimed within a specified time period (by noon the following day), the player is then released and becomes an unrestricted free agent who can sign with any team on terms he can negotiate. Waiver claims are based upon the same order of priority established by the NFL draft, i.e., because the Carolina Panthers had the worst record last year, they have first priority on any waiver claims.
It seems doubtful to me that Kevin Austin will be claimed off waivers, but I suppose we will see.