The Age Discrimination in Employment Act (ADEA) is the federal law governing age discrimination. It was enacted in 1967 to promote the employment of older persons based on ability rather than age, prevent discrimination, and help solve the problems that arise with an aging workforce. Many states also have laws prohibiting age discrimination and may have more restrictions than the ADEA.
The ADEA prohibits an employer from refusing to hire, firing, or otherwise discriminating against a person age 40 or older, solely on the basis of age. Thus, an employer can't deny an employee pay or fringe benefits when the only justification is age. Nor may an employer classify employees into groups on the basis of age in a way that unfairly deprives individuals of employment opportunities.
For example, an employer may not relegate all older workers to a particular level of employment within a company and then decline to promote them.
The ADEA protects individuals who are at least 40 years old. There's no cap, so everyone age 40 and older is protected by the Act, with a few exclusions and exceptions. For instance, an elected official and her staff and “policy making appointees” are excluded from the Act.
The ADEA carves out a compulsory retirement exception for “bona fide executives” or “high policymakers” – i.e., an employer may impose compulsory retirement on any employee age 65 or older who is either a bona fide executive or high policymaker and who is entitled to receive a nonforfeitable annual retirement benefit of at least $44,000.
In 1990, Congress further extended the reach of the ADEA by passing the Older Workers Benefit Protection Act (OWBPA) as a way to further ensure that worker benefits were further protected from age discrimination.
Related articles on the ADEA from the State Employment Law Letters designates additional valuable resources available exclusively to Employment Law Letter subscribers