Question

In: Operations Management

What does ADEA stand for? What does the ADEA do? Explain what any exceptions to the...

  • What does ADEA stand for?
  • What does the ADEA do?
  • Explain what any exceptions to the ADEA are.

Solutions

Expert Solution

ADEA stands for the Age Discrimination Employment Act.

The ADEA is a US labour law that seeks to protect the employees having an age of 40 years and above from the discrimination on a basis of hiring, promotion, compensation, discharge or any other privileges for the employment on the basis of their age. It promote statements of specifications in the age preference and prohibits the denial of benefits to older employees. An employer might reduce benefits on the basis of his age only if the cost in providing the reduced benefits to older workers is as same as the cost in providing full benefits to the younger workers. It protects the US citizens working for US employers operating abroad except where it would violate the laws of that specific country. This labour law does not stop an employer from favoring any senior employee over a junior even if the junior or the younger employee is over 40 years old. The remedies over ADEA include compensatory damages for employee or damages if reinstatement is not feasible.

Exceptions to the ADEA include:
Bonafide seniority system which enhances employee wages and benefits
Bonafide high policymaker which enhances the employees to force retire at the age of 65 with a minimum annual pension
Reasonable factors excluding age which enhances the employee experience, education and skills
Bonafide occupational qualification provides that certain age limits are allowable when a bonafide reason is there to implement them. This is necessary for the employee to perform the functions of the job .


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