What Do You Need to Know About the Age Discrimination in Employment Act (ADEA)

Posted On: February 28, 2020

Legal compliance in the workplace is essential for several reasons. Many employment laws were created to provide every qualified individual a fair shake at open positions. That’s why the Age Discrimination in Employment Act is so critical in today’s employment market. What is the ADEA, and how can it affect your business? Let’s take a closer look.  

What Businesses are Affected? 

The ADEA applies to employers with 20 or more employees on their permanent payroll. It protects any employee over the age of 40 who have been discriminated against in the workplace due to their age. It’s important to note in today’s employment marketplace, the oldest of the millennials are reaching the age of 40, so age discrimination can affect three generations within the workforce.  

How Does it Protect Workers?  

If an employee over the age of 40 feels they were replaced by or not considered for the job correctly because the employer chose to hire a younger employee, they are protected. However, the worker needs to prove that the younger employee is “substantially younger.” Currently, there isn’t a consensus about the actual age or how many years younger constitutes this value. However, the courts have decided that the minimum age difference is three years.  

Older Workers Benefit Protection Act 

For businesses to protect themselves in the event that they must lay off workers over the age of 40, they should have these employees sign a waiver. This falls under the Older Workers Benefit Protection Act or OWBPA. These waivers need to be drafted by legal professionals and compliant with the current state and federal laws.  

How Can You Stay Compliant?  

Consulting and partnering with experts in employment compliance is your best avenue to ensure that everyone is treated fairly, and delicate situations are handled correctly. Working with a staffing provider who is a diversity qualified supplier to provide additional insight and knowledge of compliance in the industry will help you stay successful.  

Do you want to know more about legal compliance in the workplace?  

Anserteam Workforce Solutions represents North America’s very best staffing agencies aligned together to deliver world-class workforce management solutions. We offer end-to-end talent services that can be customized for any size business, utilizing our Managed Services Provider (MSP) model and Vendor Management Solutions (VMS) technology. Is your organization seeking a WBENC-certified diversity partner to provide measurable results and substantial cost savings?  Contact us today.