Age Discrimination in Employment Act (ADEA)
Federal statute (29 U.S.C. §§ 621-634) prohibiting employment discrimination against individuals 40 and older. Applies to employers with 20+ employees. Covers hiring, firing, promotions, layoffs, compensation, benefits. Damages: back pay, front pay, reinstatement, liquidated (double) damages for willful violations, attorney's fees, but no compensatory or punitive damages. The Older Workers Benefit Protection Act (OWBPA) imposes specific waiver requirements for severance agreements covering ADEA claims.
The Age Discrimination in Employment Act (ADEA) is a federal statute prohibiting employment discrimination against individuals 40 years of age and older. Enacted in 1967, the ADEA addresses age-based discrimination in hiring, termination, promotions, layoffs, compensation, and benefits. The statute applies to employers with 20 or more employees, narrower than Title VII's 15-employee threshold. The ADEA is one of the principal federal employment discrimination statutes alongside Title VII and the ADA, with distinctive damages structure (no compensatory or punitive; liquidated damages for willful violations) and the OWBPA waiver framework for severance agreements.
Coverage and protected class
The ADEA protects individuals 40 and older from age-based employment discrimination. Coverage extends to: (1) private employers with 20+ employees; (2) federal, state, and local government employers (with limitations); (3) employment agencies; (4) labor organizations. Reverse age discrimination, discrimination against younger workers in favor of older workers, is generally not actionable (General Dynamics v. Cline). Texas's TCHRA provides parallel coverage at the lower 15-employee threshold, extending state-law protection to mid-market Texas employers not covered by ADEA.
But-for causation, Gross v. FBL
Gross v. FBL Financial Services (2009) held that ADEA disparate-treatment claims require the plaintiff to prove age was the "but-for" cause of the adverse employment action. This is a higher standard than Title VII's "motivating factor" framework, meaning ADEA plaintiffs face a more demanding causation requirement. The decision was controversial and prompted Congressional proposals to amend the statute, but the but-for standard remains controlling. Practical implication: mixed-motive cases that would survive under Title VII may fail under ADEA, where the plaintiff must show age was the determinative reason rather than just one motivating factor.
OWBPA waiver requirements
The Older Workers Benefit Protection Act imposes specific requirements for valid waivers of ADEA claims, typically in severance agreements and reductions in force. To validly waive ADEA claims, the waiver must: (1) be in writing and understandable; (2) specifically refer to ADEA claims; (3) not waive future claims; (4) provide consideration beyond what employee is already entitled to receive; (5) advise employee in writing to consult attorney; (6) give employee at least 21 days to consider (45 days for group programs); (7) provide 7-day revocation period after signing. In group reductions, employer must provide specific information about the program (job titles and ages of selected and not-selected employees in the decisional unit). Failure to satisfy OWBPA voids the waiver as to ADEA claims, even if the broader release is otherwise valid.
Damages and remedies
ADEA damages are distinctive: (1) back pay, lost wages from termination through judgment; (2) front pay, anticipated future lost wages where reinstatement is impractical; (3) reinstatement; (4) liquidated damages equal to back pay for willful violations (effectively doubling back pay); (5) attorney's fees and costs. ADEA does not provide compensatory damages for emotional distress or punitive damages, distinguishing it from Title VII (which provides both subject to caps). The damages structure makes economic damages (back pay, front pay, liquidated) the principal recovery. The unlimited liquidated damages can produce substantial awards in willful-violation cases.
Common factual patterns
Recurring ADEA scenarios: (1) reductions in force, selecting older workers disproportionately; (2) replacement with younger workers, terminating older workers and hiring younger replacements; (3) promotion denials, passing over older workers; (4) age-based comments, "old guard," "fresh blood," "energy" comments creating evidence of intent; (5) compulsory retirement, generally prohibited except for specific BFOQs and certain executive positions; (6) "overqualified" framing of older candidates; (7) benefits cuts targeting older workers' benefits.
For Texas employers, ADEA exposure is substantial, particularly in reductions in force, which routinely generate ADEA claims. Best practice: (1) document business reasons for adverse employment actions independent of age; (2) for RIFs, conduct adverse-impact analysis on age before final selections; (3) for severance agreements with employees 40+, comply rigorously with OWBPA (specific language, 21/45-day consideration, 7-day revocation, decisional unit information); (4) train managers on age-related comments, "stuck in their ways," "energy needs," "old school" all create evidence of intent; (5) maintain neutral retirement and benefit structures; (6) coordinate ADEA with TCHRA (Texas state-law parallel). For employees: (1) recognize that severance with OWBPA-deficient waiver does not bar ADEA claims; (2) preserve evidence of age-related comments and patterns; (3) calendar 300-day EEOC charge deadline. Common pitfall: employers using template severance agreements that satisfy general waiver requirements but fail OWBPA, leaving ADEA claims preserved despite signed releases.