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Age Discrimination Basics 101

The Age Discrimination in Employment Act (ADEA)

The Age Discrimination in Employment Act (ADEA) was enacted in 1967 to prohibit employers from discriminating against employees based on age. Specifically, it protects employees who are 40 years or older. While the ADEA does not cover workers under 40, many states have additional anti-discrimination laws that extend protections to younger employees.

The ADEA establishes a minimum standard for anti-discrimination laws nationwide, but states may—and often do—enforce stricter regulations to further protect employees.

ADEA vs. Other Anti-Discrimination Laws

Unlike broader anti-discrimination laws like the Civil Rights Act of 1964 (CRA), which prohibits both positive and negative employment actions based on race, national origin, sex, and religion, the ADEA does not ban preferential treatment for older workers.

Comparison: Discrimination Under the CRA vs. ADEA

Prohibited Discrimination Under the CRA

Suppose ABC Pest and Lawn Service is hiring a Pest Control Representative. The hiring manager, Saul, has narrowed the candidates to:

  • John, a Latino man with customer service experience but no pest control background.
  • Joe, a Black man with seven years of experience in pest control, outstanding reviews, and relevant skills.

 

Saul, also Latino, acknowledges Joe is the best candidate but hires John instead, aiming to increase Latino representation at the company.

This is illegal discrimination under the CRA because race influenced the hiring decision. Even though both candidates belong to minority groups, employment decisions cannot be based on race.

Non-Prohibited Discrimination Under the ADEA

Now, consider a hiring manager at a grocery store choosing between:

  • Joann, 56, with 15 years of grocery store experience.
  • Sidney, 37, with 17 years of similar experience.

 

Although Sidney has slightly more experience, the manager hires Joann, believing her age makes her more dependable.

This is not illegal under the ADEA because the law permits age consideration when favoring workers 40 or older. This contrasts with the CRA, which prohibits any race-based hiring decisions.

Who Is Covered by the ADEA?

The ADEA applies to:

  • Private employers with 20 or more employees
  • State and local governments
  • The Federal government
  • Employment agencies
  • Labor organizations

 

Prohibited Discrimination

The ADEA forbids discrimination based on age in all aspects of employment, including hiring, promotion, demotion, termination, wages, training, and job assignments.

Importantly, a negative employment action does not have to involve financial harm. A reduction in job responsibilities alone can still be considered discrimination.

Even non-employees negatively impacted by age discrimination can file complaints with the EEOC (discussed below).

Harassment Under the ADEA

Harassment includes derogatory remarks, segregation, pay reduction, or other negative treatment based on age. However, a single remark or minor incident does not typically meet the legal definition of harassment.

To qualify as harassment under the ADEA, the conduct must:

  1. Be severe or pervasive enough to create an intimidating, hostile, or abusive work environment.
  2. Be a condition of continued employment (i.e., tolerated to keep one’s job).

 

Example:

Sam, 68, has worked at Canning Plant U.S.A. for 40 years. A group of younger employees repeatedly tell him, “Hurry up, old man!” While unprofessional, this alone does not meet the legal standard for harassment—yet. However, if such behavior continues and impacts Sam’s job conditions, it could become actionable.

Disparate Impact Discrimination

Unlike harassment, which is intentional, disparate impact discrimination is unintentional but still results in age-based discrimination. This occurs when seemingly neutral policies disproportionately affect older workers.

Example: Meacham v. Knolls Atomic Laboratory

A company required employees to take assessments unrelated to job performance, using scores to determine layoffs. The terminated employees were overwhelmingly over 40. The court ruled this was disparate impact discrimination, as the test had no justification beyond age.

Employer Liability

Supervisors

An employer is automatically liable if a supervisor’s discriminatory actions lead to an adverse employment outcome (e.g., termination, demotion). The employer can only avoid liability if it:

  1. Took reasonable steps to prevent and correct the discrimination.
  2. The employee failed to follow corrective measures offered by the employer.

 

Non-Supervisory Employees

Employers are liable for discriminatory actions by general employees, contractors, or customers if they knew or should have known about the discrimination and failed to take corrective action.

Exceptions to the ADEA

Small Businesses

Employers with fewer than 20 employees are exempt from the ADEA but may still be subject to state-level anti-discrimination laws.

Bona Fide Seniority Systems

Employers may implement seniority-based pay and promotion policies if they are based on tenure, not age.

Bona Fide Occupational Qualifications (BFOQ)

Employers can enforce age limits when:

  • Age is essential to job performance (e.g., airline pilots, law enforcement).
  • Public safety is a concern.

 

For instance, Congress has debated raising the mandatory airline pilot retirement age from 65 to 67 to address pilot shortages.

Mandatory Retirement for Executives

Companies can require executives to retire at 65, but only if they receive an annual pension of at least $44,000.

Employment Advertisements & Applications

  • Job postings cannot specify age limits (except for BFOQs).
  • While employers can ask for birthdates on applications, the EEOC discourages it, as it may deter older applicants and be used as evidence in discrimination claims.

 

The Equal Employment Opportunity Commission (EEOC)

The EEOC enforces the ADEA, investigates complaints, and may take legal action against employers.

To file a lawsuit under the ADEA, an employee must first file a charge with the EEOC via its Public Portal.

Deadlines to File a Claim

  • Standard: 180 days from the incident
  • Extended: Varies by state law

 

The EEOC does not pursue all claims, as many cases involve lawful employment decisions. However, when the EEOC takes a case, settlements often occur before trial due to high legal and reputational risks for employers.

Notable ADEA Cases

Texas Roadhouse ($12M Settlement)

The restaurant chain was sued for allegedly rejecting applicants over 40 for public-facing roles like servers and hosts, favoring younger workers. Managers were reportedly instructed to hire employees who could “grow with the company.”

Central Freight Lines ($400K Settlement)

Older employees (50+) were laid off under the guise of workforce reduction, while younger replacements were hired. Employees were also subjected to age-based derogatory remarks.

Kelley Drye & Warren ($574K Settlement)

This law firm cut compensation for attorneys over 70, regardless of performance. A partner who complained faced retaliation, leading to a settlement and policy reversal.

Final Thoughts

While the ADEA provides important protections, it does not cover all employees or all forms of age-related bias. Many states have stronger laws, and most companies implement their own workplace civility policies.

What to Do If You Experience Age Discrimination

  1. 1.Report the issue internally (HR, management).
  2. 2.File an EEOC complaint if internal resolution fails.
  3. 3.Consult an employment lawyer for legal guidance.

If you believe you’ve been discriminated against, timely action is crucial to protect your rights under the ADEA.

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