Copyright © 2014 Pearson Education, Inc. Employment Law: New Challenges in the Business Environment, 6e Moran Chapter 16 Age Discrimination Employment Law: New Challenges in the Business Environment

Copyright © 2014 Pearson Education, Inc. Employment Law: New Challenges in the Business Environment, 6e Moran 16-2 Appreciate the ramifications of the Age Discrimination in Employment Act. Learn that age discrimination applies to employees 40 years old or older. Know that the mandatory retirement age has been eliminated. Consider that age discrimination usually occurs when an employer chooses to discharge an older employee because of his or her higher salary. Chapter Checklist

Copyright © 2014 Pearson Education, Inc. Employment Law: New Challenges in the Business Environment, 6e Moran 16-3 Realize that older employees are often replaced by younger ones who earn far less. Be aware that executives can be forced to retire when they reach 65 years of age. Be concerned that forcing older employees to accept early retirement packages is age discrimination. Understand that an employer’s justification for layoffs cannot be motivated by age discrimination. Appreciate that elderly people have the right to work. Chapter Checklist

Copyright © 2014 Pearson Education, Inc. Employment Law: New Challenges in the Business Environment, 6e Moran 16-4 Age Discrimination in the Employment Act of 1967 (ADEA) Promoted the employment of individuals over 40. Amended to discontinue mandatory retirements. Exception: Companies can force high policy-making positions to retire at 65.

Copyright © 2014 Pearson Education, Inc. Employment Law: New Challenges in the Business Environment, 6e Moran 16-5 Discrimination Requirements The initial test for determining age discrimination has four prongs: Employee was qualified. Employee was terminated. Employee was a member of a protected class. Employee was replaced by someone younger or was otherwise discharged because of age.

Copyright © 2014 Pearson Education, Inc. Employment Law: New Challenges in the Business Environment, 6e Moran 16-6 Damages Damages recoverable for age discrimination include: Reinstatement Back pay Differential in pay due to seniority Pension-benefit contributions

Copyright © 2014 Pearson Education, Inc. Employment Law: New Challenges in the Business Environment, 6e Moran 16-7 Filing Requirements File a claim with EEOC within 2 years of the incident. Statute of limitations is extended to 3 years. Complainant may proceed in state or federal court.

Copyright © 2014 Pearson Education, Inc. Employment Law: New Challenges in the Business Environment, 6e Moran 16-8 Employer's Justification for Layoffs Lay off older works for financial reasons. Can save money by replacing older workers with young workers. For layoffs not to be in violation, they must be made across the board.

Copyright © 2014 Pearson Education, Inc. Employment Law: New Challenges in the Business Environment, 6e Moran 16-9 Retirement Packages Forcing older employees to accept retirement packages is discriminatory. Retirement must not be mandatory. Retirement packages must be accepted voluntarily.

Copyright © 2014 Pearson Education, Inc. Employment Law: New Challenges in the Business Environment, 6e Moran Retirement Packages - continued Retirement packages must offer something in addition to what the employee is already entitled to. Retirement package waivers: In writing Employee has 21 days to review and accept the offer Employee has 7 days to revoke after accepting the offer.

Copyright © 2014 Pearson Education, Inc. Employment Law: New Challenges in the Business Environment, 6e Moran Older Workers Benefit Protection Act of 1990 Amended ADEA to protect older workers in the hiring process. Some employers believe it would be a financial burden on their health and pension plans to hire older workers.

Copyright © 2014 Pearson Education, Inc. Employment Law: New Challenges in the Business Environment, 6e Moran Comparative Treatment of the Elderly In other cultures, elderly are viewed as having wisdom and are revered. In U.S. elderly often forced into retirement. Except for executives or politicians.

Copyright © 2014 Pearson Education, Inc. Employment Law: New Challenges in the Business Environment, 6e Moran Comparative Treatment of the Elderly (Cont.) Prejudices remain even with mandatory retirement gone. It would be imprudent to automatically discount an older worker’s skill, knowledge and experience. Not utilizing talents of all American workers.

Copyright © 2014 Pearson Education, Inc. Employment Law: New Challenges in the Business Environment, 6e Moran Human Resource Advice Do not take age into account when making employment decisions. Understand the purpose of the ADEA. Know that protection against age discrimination begins at age 40. Consider that there is no longer mandatory retirement, with few exceptions. Realize that employees may work as long as they are competent to do so, with few exceptions.

Copyright © 2014 Pearson Education, Inc. Employment Law: New Challenges in the Business Environment, 6e Moran Human Resource Advice (Cont.) Refrain from coercing employees to accept early retirement packages. Be careful not to discharge an inordinate number of older workers when downsizing. Learn that the desire to project a more youthful and up-to-date image might have to give way to the rights of older workers. Be aware that company policy may dictate the mandatory retirement age of high-level policy- making executives.

Copyright © 2014 Pearson Education, Inc. Employment Law: New Challenges in the Business Environment, 6e Moran Summary With life expectancy increasing, it is discriminatory to prohibit older individuals from working. The purpose of the Age Discrimination in Employment Act is to dismiss this behavior and allow workers to continue their current jobs, once they pass the age of 65.