Question

Anthony is a non-managerial employee of FedCo who recently turned 65. FedCo has a mandatory retirement policy that requires Jerry to retire. Under the policy, Jerry will receive an annual retirement benefit of $45,000. Under federal law, is FedCo's mandatory retirement policy lawful?

Answer 1

Under federal law, FedCo's mandatory retirement policy may not be lawful due to the Age Discrimination in Employment Act (ADEA). This act prohibits employers from discriminating against employees based on their age, especially for employees who are 40 years old or older.

Step-by-step explanation:

Under federal law, FedCo's mandatory retirement policy may not be lawful. The Age Discrimination in Employment Act (ADEA) is a federal law that prohibits employers from discriminating against employees based on their age, specifically for employees who are 40 years of age or older. This means that FedCo cannot legally force Jerry to retire solely based on his age of 65.

The ADEA includes several exceptions to mandatory retirement policies, such as certain high-ranking executives or employees in policymaking positions. However, non-managerial employees like Jerry would likely not fall under these exceptions.

By mandating Jerry's retirement at 65, FedCo may be in violation of the ADEA and could face legal consequences for their discriminatory policy.