The Age Discrimination in Employment Act (ADEA) is a legislation passed by the U.S. Congress in 1967 that prohibits employers from discriminating against workers over the age of 40 with respect to any terms and conditions of employment. The ADEA applies to employers with 20 or more employees, labor organizations, employment agencies, and the federal government.
Under the ADEA, employers may not discriminate against employees or applicants based on age by:
- Refusing to hire or promote a person because of their age
- Firing a person because of their age
- Forcing an employee to retire early
- Discriminating in the provision of benefits, such as health insurance or retirement plans
- Paying someone less because of their age
- Using age as a factor in making hiring, promotion, transfer, or other employment decisions
Age discrimination in the workplace continues to be an issue in the modern workplace. In 2019, the Equal Employment Opportunity Commission (EEOC) received 25,957 age discrimination complaints, the second-highest number since the agency was established in 1965.
Employers who violate the ADEA can be held financially liable for damages, such as lost wages, compensatory damages, and punitive damages. If an employer’s violation is severe or repetitive, the courts could award up to $300,000 in damages per employee.
It is important for employers to understand their legal obligations under the ADEA. To prevent age discrimination and retaliatory practices, employers should incorporate age discrimination into their workplace policies and employee handbooks. Companies should also provide training to staff on the legal implications of age discrimination.