40 is the Magic Number for Ageism Lawsuits

Date: April 02, 2013

By Karen Harned

Read this in the digital edition

Forty may be the new 30, but not according to the federal government. Since 1967, the Age Discrimination in Employment Act has protected individuals who are 40 or older from being fired, refused a job, forced to retire or treated unfairly with payment, promotions, benefits, healthcare coverage, retirement plans and other employment opportunities based on age.

Since 2006, charges of age discrimination have increased by 40 percent, according to the Equal Employment Opportunity Commission, which handles such claims. In fiscal year 2011, 23,465 charges of age discrimination were filed. As the economy continues to sputter, and older people remain in the workforce longer, these claims are expected to increase—and your business could be forced to pay tens of thousands of dollars if you are caught on the wrong side of the law.

Like other discrimination claims, age discrimination charges can be leveled against a business owner beginning with the hiring process through termination. Here are some tips to protect your business against age discrimination claims.

Do not advertise age preference and limitations in job notices. Clearly, it would be illegal to make statements like, “People over 40 need not apply,” but remember more subtle references to age also are inappropriate. For instance, if a storeowner was looking for a new store clerk, he could not put out notices or advertisements with statements like, “younger applicants preferred,” or “looking for a young, responsible worker.”

In job interviews, never ask an applicant their date of birth. If you need a date to do a criminal background check, do such checks on applicants only after you have decided to hire them. Call the applicant, or send a letter that says, “We have decided to hire you, contingent on passing the criminal background and driving records check. In order to do that, we need your date of birth.” This way, it is clear that your decision to hire is not based on age.

Additionally, the ADEA prohibits employers from:
• Denying benefits to older employees.
• Imposing involuntary retirement before age 70.
• Firing or refusing to hire employees based on age.
• Inquiring about an applicant’s age for purposes prohibited by the ADEA.
• Limiting the age for apprenticeship programs (subject to certain exemptions).

The ADEA only applies to businesses with 20 or more employees, but many states have similar requirements with lower employee thresholds. To learn more about the age discrimination law in your state, contact your state labor department or an attorney.

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