If you’re over 40 and believe you’ve been passed over for promotion, fired, or treated unfairly because of your age, federal law protects you. Age discrimination remains one of the most common—yet underreported—forms of workplace discrimination in America.
This guide explains your rights under the Age Discrimination in Employment Act (ADEA) and how to pursue a claim.
The Age Discrimination in Employment Act (ADEA)
The ADEA protects workers aged 40 and older from discrimination in:
- Hiring – Refusing to hire qualified candidates because of age
- Firing – Terminating employees to replace them with younger workers
- Promotions – Passing over qualified older workers for advancement
- Compensation – Paying older workers less for the same work
- Benefits – Reducing or eliminating benefits for older employees
- Training – Excluding older workers from development opportunities
The ADEA applies to employers with 20 or more employees, including federal, state, and local governments.
Recent Age Discrimination Cases
Hatzel & Buehler – $500,000 Settlement (2024)
According to the EEOC, this electrical contractor settled for $500,000 after refusing to hire older workers at their New Jersey branch. Eight job candidates received compensation, and the company agreed to change its hiring policies.
Allen Theatres – $250,000 Settlement (2025)
According to AARP, this theater chain paid $250,000 after forcing a longtime manager to retire during the pandemic and refusing to rehire him when theaters reopened. The company also discriminated against all employees 65+ by refusing to pay for health insurance once they were eligible for Medicare.
Dollar General – $295,000 Settlement (2024)
A regional director discriminated against older district managers for nearly two years, calling them names, saying he was “building a younger team,” and threatening to fire them. The EEOC secured a $295,000 settlement plus policy changes.
Scripps – $6,875,000 Settlement (2023)
The healthcare company paid nearly $7 million to settle claims over its mandatory retirement age policy for physicians—one of the largest ADEA settlements in recent years.
Warning Signs of Age Discrimination
Common red flags include:
- Comments about being “overqualified” or needing “fresh ideas”
- Jokes about retirement, memory, or technology skills
- Sudden negative performance reviews after years of good ratings
- Younger, less-qualified employees getting promoted instead of you
- Being left out of meetings, projects, or training opportunities
- Pressure to retire or take early retirement packages
- Job postings seeking “digital natives” or “recent graduates”
AI and Age Discrimination
A new frontier in age discrimination involves AI hiring tools. In a groundbreaking case, plaintiffs sued Workday (an HR software company) alleging its algorithm-based screening tools discriminate based on age, race, and disability. The lead plaintiff applied to 80-100 jobs at companies using Workday’s tools and received no offers.
What Damages Can You Recover?
Successful ADEA claims may result in:
- Back pay – Lost wages from termination to judgment
- Front pay – Future lost earnings if reinstatement isn’t practical
- Liquidated damages – Double damages for willful violations
- Benefits – Lost health insurance, retirement contributions, etc.
- Attorney’s fees – The employer pays your legal costs
Note: Unlike Title VII discrimination cases, the ADEA does not allow recovery of compensatory damages for emotional distress or punitive damages. However, state laws may provide these additional remedies.
Average Settlement Amounts
- EEOC mediations: $40,000-$60,000 median
- Individual settlements: $50,000-$300,000 typical range
- Class actions: $1 million-$10 million+
- Jury verdicts: Can reach $1 million+ with liquidated damages
Filing a Claim: Step by Step
Step 1: File with the EEOC
You must file a charge with the Equal Employment Opportunity Commission before suing. Time limits:
- 180 days from the discriminatory act (federal deadline)
- 300 days in states with their own anti-discrimination agencies
Step 2: EEOC Investigation
The EEOC will investigate your charge. They may attempt mediation or issue findings.
Step 3: Right to Sue Letter
If the EEOC doesn’t resolve your case, they’ll issue a “Right to Sue” letter allowing you to file a federal lawsuit.
Step 4: Federal Court Lawsuit
You have 90 days from receiving the Right to Sue letter to file suit.
Frequently Asked Questions
Can I sue if I’m under 40?
The federal ADEA only protects workers 40 and older. However, some states (like New Jersey and New York) protect all ages from discrimination.
What if my employer has fewer than 20 employees?
The federal ADEA won’t apply, but your state may have age discrimination laws covering smaller employers.
Can I be forced to retire?
Generally, no. Mandatory retirement ages are illegal except for certain executives and public safety officers (police, firefighters).
What if I signed a severance agreement?
The Older Workers Benefit Protection Act (OWBPA) requires specific disclosures in severance agreements. If these requirements weren’t met, your waiver may be invalid.
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