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Age Discrimination in Employment Act (ADEA)

Moneyzine Editor
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Moneyzine Editor
2 mins
November 22nd, 2023
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Age Discrimination in Employment Act (ADEA)

Definition

The term age discrimination refers to the act of treating someone in the workplace unfairly because of their age. Age discrimination typically occurs in the hiring process, although there are a number of other specific workplace protections offered to individuals age forty or older.

Explanation

Signed into law by President Johnson in 1967, the Age Discrimination in Employment Act (ADEA) made it illegal to discriminate against individuals age forty or older. Enforced by the Equal Employment Opportunity Commission (EEOC), the ADEA protects individuals from unfair acts with respect to: hiring, job assignments, compensation, promotions, fringe benefits, layoff, discharge, and other rights of employment.

The span of protections offered under the ADEA includes:

  • Apprenticeships: while there are certain exceptions, it's unlawful to discriminate against someone wishing to gain entry into an apprenticeship program.

  • Job Postings: generally, it is unlawful to include age preferences or specifications when advertising a job opening, unless age is a bona fide occupational qualification (BFOQ).

  • Pre-Employment Applications: while employers are permitted to ask a job applicant their age or date of birth, the information gathered via these documents must be made for a lawful purpose.

  • Employee Benefits: employers are specifically prohibited from denying benefits to older workers. However, it is lawful for employers to reduce benefits based on age if the cost to provide these benefits is the same as the cost to provide the benefit to workers under the age of forty.

The law applies to companies with twenty or more employees, in addition to all state and local governments. Harassment of workers because of their age is also illegal, since it creates an offensive or hostile work environment; harassment may be as simple as a series of offensive remarks concerning the victim's age. It's also illegal to retaliate against an employee that files a report of such discrimination, testifies on behalf of a victim, or is involved in any other legal proceeding under the ADEA.

Note: Mandatory retirement (based on age) is permitted for executives over the age of 65, who are in policy-making positions and who are entitled to certain pension benefits.

Related Terms

  • The term Employee Retirement Income Security Act refers to a federal law that establishes the minimum standards for private industry pension plans. The Employment Retirement Income Security Act of 1974 requires plan administrators to provide participants with information such as eligibility and vesting, in addition to specifying a number of standards the plans must follow.
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  • The term Equal Employment Opportunity refers to laws that provide job applicants with certain protections against discrimination in hiring. Established as part of the Civil Rights Act of 1964, the Equal Employment Opportunity Commission assists in the protection of employees from discrimination based on color, race, religion, sex or national origin.
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  • The term Family and Medical Leave Act refers to a law that allows eligible employees to take unpaid leave for certain family and medical reasons. If an individual is granted leave under the Family and Medical Leave Act, employers must allow the employee to return to their job, or a job that provides equivalent benefits and pay.
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  • The term Uniformed Services Employment and Reemployment Rights Act refers to a law that protects the jobs of those that take leave from work to participate in the military. The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) strengthens and clarifies those protections found in the Veterans' Reemployment Rights (VRR) Statute.
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  • The term unemployment discrimination refers to the practice of excluding out-of-work individuals from consideration during the hiring process. Unemployment discrimination occurs when a job posting, or internal review process, only considers working individuals as qualified candidates.
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  • The term wrongful demotion refers to an employer that has unfairly reduced the rank, or lowered the title, of an employee. A demotion is normally accompanied by a loss in pay, a reduction in work hours, or a loss of fringe benefits.
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