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Some industries have mandatory retirement ages for certain roles. For instance, in many states, there are mandatory retirement ages for police officers, pilots, and judges. Is it legal, however, for employers to impose a mandatory retirement age? In this article, we’ll explore this question.
Is a Mandatory Retirement Age Legal in the Workplace?
While there are some exceptions, in general, state and federal-level age discrimination laws make it illegal for an employer to have a mandatory retirement age. It should be noted, however, that these discrimination laws are only applicable to those individuals classified as employees. Furthermore, these laws do not apply to bona fide partners or shareholders in closely held professional corporations. As such, professionals in a law firm or physician practice organized as a professional corporation may require partners to retire at a specified age and this would not run afoul of age discrimination laws.
What laws place restrictions on mandatory retirement ages? Well, at the federal level, the Age Discrimination in Employment Act (ADEA) prohibits employers with 20 or more employees from discriminating against any individual with respect to the terms or conditions of employment based on the individual’s age. Under the ADEA, mandatory retirement ages are only allowed if an employee is 65 or older, is employed in a bona fide executive or high policy-making role, and is entitled to a minimum of $44,000 as an annual retirement benefit that is both immediate and not subject to forfeit.
At the state level, New Jersey’s Law Against Discrimination (LAD) prohibits employers of all sizes from putting a mandatory retirement age in place. Comparable to the ADEA, the LAD allows for a mandatory retirement age if an employee is a bona fide executive or high-level policymaker and the employee is entitled to a minimum of $22,000 as an annual retirement benefit that is both immediate and not subject to forfeit. To determine whether an employee falls into this exception, either under federal or state law, a six-factor test approved by the U.S. Supreme Court is employed.
Should an employee be the victim of an unlawful mandatory retirement age, they can seek redress under federal or state law. Formerly, those pursuing a claim under New Jersey’s LAD were required to file a complaint with the New Jersey Attorney General and restricted to pursuing relief in the form of reinstatement and back pay with interest. Currently under New Jersey’s LAD, however, an employee can pursue all remedies available under any applicable law. Relief sought may include:
- Reinstatement
- Back pay
- Front pay
- Emotional distress damages
- Punitive damages
- Interest
- Attorneys’ fees
New Jersey Employment Law Attorneys
If you have been the victim of a mandatory retirement age or another form of age discrimination, there are legal remedies available to you. Reach out to the dedicated team of employment law attorneys at Castronovo & McKinney to discuss your options. Contact us today.