Are Mandatory Retirement Ages Legal?

👴🏼 Are Mandatory Retirement Ages Legal? Quick Facts You Need to Know

In most cases, being forced out of a job because of age would violate California and federal anti-discrimination laws. If you’re told you must retire at a given age or feel your employer is forcing you to retire against your will, your legal rights may be violated, and you should call our office. We can talk about what’s going on and whether you may fall into one of the few exceptions to age discrimination law.

If your workplace enforces a mandatory retirement age or you feel pressured to retire earlier than desired, consult with a skilled MJB Law Group Tustin employment discrimination attorney, as you may be a victim of forced retirement age discrimination. Our Employment Attorneys Serving Costa Mesa can help you understand your rights, how state and federal laws apply to your situation, and how we can assist you. Call us for a FREE consultation at (949) 266-0880 or fill out our confidential contact form today.

Generally, an employer may not force someone to retire due to their age, but you can be asked about your retirement plans if the inquiry is made in good faith and your employer is planning for its future needs. If the inquiries are repeated, heavy-handed, and you’re being badgered into making a decision, it may be evidence of illegal bias against you because of your age.

What Does State Law Say About Mandatory Retirement?

State law covers employers with five or more employees. Mandatory retirement may not violate this law if your employer is smaller than this. Contacting us is worthwhile because, depending on how these employees are counted, you may still be protected.

The state statute is divided into two sections. The first states the overall law, and the second spells out the exceptions. This is the general rule:

• Every employer shall allow any employee indicating in writing a desire in a reasonable time and who can show the ability to do so, to continue their job beyond any retirement date in a private pension or retirement plan
• This employment shall continue as long as the employee shows their ability to perform the job’s functions adequately and the employer is satisfied with the work quality 
• Any employee showing this desire to continue employment shall give their employer written notice, in a reasonable time, of their intent to retire or leave after the employee’s retirement date

Despite this language, state law doesn’t prohibit:

• An institution of higher education from enforcing a retirement policy for tenured faculty if the institution allows reemployment of these faculty members on a yearly basis
• The forced retirement of an employee who is a 70-year-old physician employed by a professional medical corporation if their articles or bylaws provide for compulsory retirement
• Compulsory retirement of an employee who is 65 years old who, for two years before retirement, was an executive or in a high policymaking position if they’re entitled to an immediate nonforfeitable annual retirement benefit from a pension, profit-sharing, savings, or deferred compensation plan, or any combination of them, which is at least $27,000

Given the overall workforce, relatively few of us fall into state law’s exceptions. Chances are good if you’re told you must retire because you’ve reached a certain age your employer is violating your rights.

What Does Federal Law Say About Mandatory Retirement?

The Federal Age Discrimination in Employment Act (ADEA) covers employers with 20 or more employees. It makes discriminating against an employee who is 40 or older due to their age unlawful, even if the employee agrees to a retirement policy spelling out a retirement age.  The ADEA’s exceptions include:

• A mandatory retirement age would be legal if the employer shows age is a “bona fide occupational qualification” (BFOQ). Generally, this would require the employer to demonstrate that those working at a certain age pose an objective safety issue, which may involve law enforcement or firefighter positions 
• Like state law, the ADEA has an exception for workers in a “bona fide executive or high policymaking position.” This wouldn’t apply to anyone in management, but those with overall authority over the organization, people working in “c-suite” positions, or leading a larger company's division. Federal law has a higher required pension or retirement benefit of at least $44,000 to fall into this exception

State and federal law prohibit age discrimination against employees, not business partners or co-owners. If the person is a partner in a professional practice or business, they may or may not be an employee. If the organization is large and the person has little authority or autonomy, they may be considered an employee under the ADEA.

Contact Our Employment Discrimination Lawyers

Age discrimination can severely affect your career, income, lifestyle, and well-being. If you feel you’re a victim of forced retirement age discrimination, have legal questions, or need representation, get help from an experienced employment discrimination lawyer at MJB Law Group. Our Tustin employment discrimination attorneys can discuss your rights and options and guide you through filing, negotiating, and, if necessary, litigating a discrimination claim.

Call us today at (949) 266-0880 or complete our confidential contact form for a FREE consultation and case evaluation.