Age discrimination, or ageism, in the workplace involves treating an applicant or employee unfavorably because of their age. The Age Discrimination in Employment Act (ADEA) prohibits age discrimination against those aged 40 or older in all aspects of employment, including hiring, firing, pay, job assignments, promotions, layoffs, training and benefits. Some states also have laws to protect younger workers from age discrimination.
The U.S. Bureau of Labor Statistics projected that adults 65 and older will be 8.6% of the labor force in 2032, up from 6.6% in 2022. It also notes that the older workforce is nearly four times the size it was in the mid-1980s. With the workforce aging, employers need to be mindful of actions that constitute workplace age discrimination and take steps to prevent them from occurring.
The Cost of Age Discrimination
When experienced employees leave jobs due to a hostile work environment or are forced out, companies lose employees with institutional knowledge and expertise. This not only harms the company’s reputation but also leads to the expensive process of recruiting and training new talent. Additionally, businesses may face the burden of legal and regulatory fees, as well as potential judgment or settlement payouts. The impact on remaining employees can be equally profound, as age discrimination can decrease employee morale, lower motivation, and negatively affect productivity and work quality.
How to Prevent Age Discrimination
Given the significant financial and reputational risks, organizational leaders must take steps to prevent age discrimination. The following are suggestions for combating ageism:
- Assess organizational practices and policies. Organizations can work to eliminate outdated assumptions about older workers and foster a multigenerational culture that rejects age stereotypes by evaluating and improving their current practices and policies.
- Examine recruitment practices. Recruiters and interviewers should be trained to avoid ageist assumptions (e.g., the belief that an older candidate will retire soon). Applications should also eliminate requests for age-related information (e.g., date of birth and year of graduation), and interview panels should include people with a wide range of ages.
- Train employees and encourage reporting. Workforce training is critical to educating employees about ageism in the workplace. Since age discrimination often goes unreported, spreading awareness may increase the likelihood that employees who witness instances of ageism will report it.
- Respond to claims immediately. Ageism complaints should be taken seriously and addressed swiftly. Investigations should include interviews with all parties connected to the complaint and a review of all relevant evidence.
- Secure employment practices liability (EPL) insurance. EPL insurance provides essential coverage for employers when employees allege discrimination based on age.
As the workforce ages, business leaders should be proactive in recognizing and preventing age discrimination. Doing so can improve the workplace environment, protect the company’s reputation and help it avoid related financial losses.
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This document is not intended to be an exhaustive source of information nor should any discussion or opinions be construed as legal advice. Readers should consult legal counsel or a licensed insurance professional for appropriate advice. © 2024 Zywave, Inc. All rights reserved.
