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| Governmental Regulations |
| What you need to know about ADEA Compliance |
While all industries will need to exercise more caution in order to avoid age discrimination lawsuits, those who routinely lay off employees need to exercise special caution. The ADEA (Age Discrimination in Employment Act of 1967) protects individuals who are age 40 and over from employment discrimination based on age.
This includes discrimination “with respect to any term, condition, or privilege of employment—including, but not limited to, hiring, firing, promotion, layoff, compensation, benefits, job assignments, and training.” In short, employers must be increasingly cautious about treating older workers fairly and consistently.
Keep the following cautions in mind if you employ workers over age 40:
- Be certain that you never use a pretext to dismiss a worker you think is simply “too old” to do the job.
- Always have a legitimate business reason for terminations or refusals to hire.
- Document all business-related decisions that influence your decisions about hiring or terminating persons aged 40 or older.
- Documentation of business-related reasons for promotions, benefits, layoffs, compensation, etc. is imperative as well.
- Always avoid requesting age-related information on job applications.
- Any reduction in benefits must apply to younger and older employees equally (The Older Workers Benefit Protection Act of 1990 (OWBPA) prohibits denying benefits to older employees).
- If you intend to terminate an older worker, be sure to obtain a waiver. Recent amendments have been made to the requirements for a valid ADEA waiver, so be sure to consult your PEO for the specifics, since waivers which do not comply with current regulations are invalid.
We have a team of professionals on-staff who make it their business to understand the specifics of compliance with regulations such as the ADEA. Be sure to contact us with any questions or concerns. Contact our Human Resources Department if you have further questions.
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