The Age Discrimination in Employment Act of 1967 (ADEA) prohibits discrimination against older workers. Originally, the ADEA applied to workers between the ages of 40 and 65. But in 1986, Congress removed the upper age limit altogether, thus generally eliminating mandatory retirement at any age and extending the law’s protection to any worker starting at age 40. The ADEA’s protections apply to both employees and job applicants.
Who is Covered
The ADEA applies to all employers with 20 or more employees. It also applies to employment agencies, labor organizations and local, state and federal governments.
Basic Provisions/Requirements
Under the ADEA, it is unlawful to discriminate against a person because of his or her age with respect to any term, condition or privilege of employment, including, but not limited to:
Hiring
Discharge
Layoffs
Promotion
Wages
Healthcare coverage
Pension accrual
Referrals by employment agencies
The Act requires that there must be a valid reason not related to age – for example, economic reasons or poor job performance – for all employment decisions, but especially firing.
More recently, the ADEA was amended by the Older Workers Benefit Protection Act of 1990, which specifically prohibits employers from denying benefits to older workers. An employer may reduce benefits based on age only if the cost of providing the reduced benefits to older workers is the same as the cost of providing benefits to younger workers.
