Friday, October 5, 2007

Age Discrimination

State and federal laws protect workers from poor treatment based on their age.

Stereotypes about older people abound in our culture, but employers are not allowed to indulge in them when making workplace decisions. A number of state and federal laws prohibit employers from discriminating against employees and applicants on the basis of age.

The Age Discrimination in Employment Act

The federal Age Discrimination in Employment Act (ADEA -- 29 U.S.C. 621-634) is the major federal law that prohibits employers from discriminating against employees and applicants who are 40 years of age or older on the basis of their age.

The ADEA protects workers from age discrimination in every phase of the employment relationship, including help-wanted ads, interviewing, hiring, compensation, promotion, discipline, job evaluations, demotion, training, job assignments and termination. The ADEA does not cover discrimination in benefits and early retirement, which are addressed by a different law (see below).

The ADEA applies to all private employers that have 20 or more employees and to federal and local governments. It also applies to state governments, although their employees cannot sue them directly for age discrimination.

Not only does the ADEA prohibit employers from discriminating against older workers in favor of those who are younger than 40, it also prohibits employers from discriminating among older workers. For example, an employer can't hire a 43-year-old over a 53-year-old simply because of age.

State Laws

Many state laws also prohibit discrimination on the basis of age. Although some of these laws essentially mirror the federal law and only protect people older than 40, other laws are broader and protect workers of all ages.

State laws tend to apply to employers with fewer than 20 employees, so your employer might have to comply with your state law even if it isn’t covered by the federal law.

Discrimination in Benefits and Early Retirement

The federal Older Workers Benefit Protection Act (29 U.S.C. § 623 and following) makes it illegal for employers to use an employee's age as a basis for discrimination in benefits and retirement. Like the ADEA, this act only protects people who are at least 40 years old.

Under this law, an employer cannot reduce health or life insurance benefits for older employees, nor can it stop their pensions from accruing if they work past their normal retirement age. The Act also discourages businesses from targeting older workers when cutting staff.

In addition, the Act prohibits employers from forcing employees to take early retirement. An early retirement plan is legal only if it gives the employee a choice between two options: keeping things as they are or choosing to retire under a plan that makes the employee better off than he or she was previously. This choice must be a genuine one; the employee must be free to reject the offer. In addition, if either choice makes the employee worse off, the offer violates the Act.


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