Question

TreeWorks Inc. needs to downsize in order to streamline its business processes and to reduce operating costs. Management has conducted an employee scan, and they have realized that there are a number of employees who could retire or retire early to meet their budget goals. They have put together a packet of incentives to encourage senior employees to retire early. According to the Age Discrimination in Employment Act (ADEA), what is it very important for the company to do or not to do in this situation?

It is the employees', not the employers', responsibility to gather all information about available options.

Employers should ensure that only employees over the age of 60 receive the program’s benefits.

Employees must meet a stringent deadline in making their decision about early retirement.

Employers can cease the accrual of retirement benefits at about 65 years to induce older employees to retire.

Employees should not be coerced to accept an incentive and retire.

Answer 1

TreeWorks Inc. must provide equal opportunity to all employees regarding early retirement packages and incentives must be free of coercion and age discrimination by the ADEA.

Step-by-step explanation:

According to the Age Discrimination in Employment Act (ADEA), TreeWorks Inc. must handle its downsizing process without any form of age discrimination. The company must provide all employees, irrespective of age, equal opportunity to decide on early retirement packages without pressure or coercion. The ADEA strictly prohibits termination or discrimination against any individual based on age. Hence, the incentives should be presented in a manner that is both legal and considerate of employees' rights to make an informed, voluntary choice. It is very important for TreeWorks Inc. not to coerce employees into early retirement or create incentives that could be interpreted as indirect pressure to retire.