04/03/2024

Mandatory Retirement

It has the potential to be a problem

HR Question: Our company has mandatory retirement requiring our employees to retire at age 67. We don’t discriminate…everyone is required to retire. I had someone “push back” when I started discussing their retirement saying I was being discriminatory. I told them everyone is asked to leave at age 67. Is that a problem?

HR Answer: Well… it has the potential to be a problem. The Age Discrimination in Employment Act (ADEA) typically prohibits what they call “involuntary retirement” or in this case “mandatory retirement.” Requiring retirement is viewed as an involuntary termination and can lead to charges of age discrimination. As with most areas of human resources, there are exceptions. We will highlight a few exceptions below and share some points to consider moving forward.

Is Age a Bona Fide Occupational Qualification?

There are general exceptions if you can prove age is a Bona Fide Occupational Qualification (BFOQ) necessary to perform the duties of the position. To do this, employers are required to first show that the duties are necessary for the job. Secondarily, employers must show that the individual’s age prohibits them from performing the qualifications safely and/or efficiently. Usually, the issue of safety is paramount in this decision-making.

Please select this link to read the complete article from Clark Schaefer Strategic HR.