Age Discrimination in Employment Act

United States 1967

Synopsis

The civil rights movement of the 1960s brought about numerous social changes that transformed America. Government officials began to address the important issue of discrimination in the workplace, focusing their attention on race and gender. During this time, however, two other social groups also gained attention—the middle-aged and elderly. Until that time, age discrimination had never been considered a serious issue. Advances in medical technology had begun to extend the average life expectancy and as a result caused a dramatic shift in America's demographics. With more elderly remaining in the workforce, cases of age discrimination were also on the rise. Indeed, positive policies such as the Social Security Act had inadvertently affected the elderly in a negative way, making it disadvantageous to remain in the workforce. Also, middle-aged employees found themselves losing out to their younger coworkers. Although some states already had laws to prevent age discrimination, no federal law existed. Congress began to discuss the issue in depth and in 1967 passed the Age Discrimination in Employment Act (ADEA). Under the new legislation, the employment rights of Americans 40 years of age and older were officially protected, preventing employers from discriminating against them solely on the basis of their age. ADEA would undergo the amendment process in 1974, further strengthening the rights of the middle-aged and elderly.

Timeline

• 1947: Great Britain's Labour government nationalizes coal mines.
• 1952: Among the cultural landmarks of the year are the film High Noon and the book The Invisible Man by Ralph Ellison.
• 1957: High schools in Little Rock, Arkansas, are integrated with the aid of federal troops.
• 1962: As the Soviets begin a missile buildup in Cuba, for a few tense days in October it appears that World War III is imminent. President Kennedy calls for a Cuban blockade, forcing the Soviets to back down and ultimately diffusing the crisis.
• 1967: Biafra secedes from Nigeria.
• 1967: Arabs attack Israel, launching the Six-Day War, which results in an Israeli victory. Israel now occupies a number of formerly Arab-held territories, most notably the Old City of Jerusalem. In the years that follow, the Israelis will be forced to give up much of the territory, which stretches to the borders of Egypt. Their continued possession of the Jordan River's West Bank will provide a cause for enduring controversy with their Arab neighbors and with the newly mobilized Palestinian minority.
• 1967: Racial violence sweeps America's cities, as Harlem, Detroit, Birmingham, and other towns erupt with riots.
• 1967: The Beatles' Sgt. Pepper's Lonely Hearts Club Band tops the list of releases for a year that will long be remembered as a high point of rock history. Among the other great musical events of the year are releases by the Jimi Hendrix Experience, the Doors, and Jefferson Airplane; also, the Monterey Pop Festival marks the debut of Hendrix and Janis Joplin.
• 1967: Assisted by a team of surgeons, South Africa's Christiaan Barnard performs what is considered the world's first successful human heart transplant, though the patient dies 18 days later.
• 1972: In June police apprehend five men attempting to burglarize Democratic Party headquarters at the Watergate Hotel in Washington, D.C.
• 1977: Newly inaugurated U.S. President Jimmy Carter pardons Vietnam draft dodgers.
• 1982: Israeli troops invade Lebanon in an attack on the Palestine Liberation Organization (PLO).

Event and Its Context

The Roots of Discrimination

Until the twentieth century, the aged received little or no attention in government. They were involved in few political groups or movements and held little lobbying power. Much of this had to do with their small numbers. Because of advances in medicine, however, the life expectancy for Americans climbed dramatically. In turn, so too did the population of people aged 60 and older. Suddenly, the "gray lobby" had grown into a force with the size and power needed to pressure politicians for change. One key issue that the gray lobby wanted to address was employment, specifically retirement.

Before the middle of the nineteenth century, the concept of "retirement" was virtually unheard of. Approximately 70 percent of men aged 65 and over remained in the workforce in 1890. The effect of inflation and the high cost of living prevented early retirement. Over the next 100 years, the percentage of elderly in the workforce would drop significantly, but only because of policy changes. Many of these governmental changes began during the Great Depression.

Around 1933, Dr. Francis Townsend began the "Townsend movement" to promote a pension plan for Americans aged 60 and older. Under Townsend's plan, every worker would received $200 per month during retirement. Many in government, however, believed the plan would be unworkable. So, despite its popularity with many senior citizens, Townsend's movement died out. On 14 August 1935, however, President Franklin D. Roosevelt signed the Social Security Act into law as part of the New Deal. This act provided an old-age pension for all retirees aged 65 or older.

Although the benefits of an old-age pension were obvious, the Social Security Act also had an underlying negative effect. Although the act did not force the elderly into retirement by "law," the benefits were reduced for those who opted to continue working after age 65. The loss involved one month's pension for each month of continued employment. This restriction inadvertently strengthened the growing trend of age discrimination. Because of the scarcity of jobs at the time, many wanted the elderly to retire and thus make way for younger workers. Those elderly who wished to continue working not only lost pension benefits as a result of their choice but also faced a hostile job market. They discovered that there were few, if any, laws to protect them against age discrimination.

Like their older peers, middle-aged employees also found themselves the frequent victims of age discrimination. Promotions and advancement opportunities typically went to the younger employees. Because these middle-aged employees were closer to "retirement" age, employers were unwilling to invest in these employees by hiring or training them. In the politically turbulent days of the civil rights movement, the rights of this population were commonly forgotten in favor of a focus on matters of race and gender discrimination. Fortunately, the middle-aged employees' connection to the growing gray lobby meant they did not go completely ignored. Both age groups would eventually see changes in the law to help them overcome the hurdle of age discrimination.

The Civil Rights Movement: Birth of the ADEA

Although the problem of age discrimination existed in the United States workforce, little was done to address the issue until the late 1960s. One major step, however, involved tackling the problems caused by pension penalties. A 1950 amendment to the Social Security Act allowed people 75 years of age and older to work without loss of their benefits. Another amendment in 1954 lowered the age exemption to 72. Although the amendment protected elderly workers who wished to return to the workplace, it in no way protected their employment rights or guaranteed that they would be able to find work. Age discrimination remained virtually unchecked. According to a study cited in Lawrence Friedman's book Your Time Will Come: The Law of Age Discrimination and Mandatory Retirement, of "21,386 job openings listed with state employment offices in 7 cities (1956)—more than half of the jobs were closed to people over a certain age."

As the civil rights movement strengthened during the 1950s and 1960s, the concept of fair employment gained the attention of lawmakers. States began to develop laws that prevented unfair hiring practices on the basis of race, gender, and religion. In some states, the laws were extended to consider age discrimination as well. In 1956 new statues eliminated the maximum hiring age for federal employees. Several political changes also contributed to an improved picture regarding employment issues of the aged. These included the Manpower Development and Training Act (1962), the Economic Opportunity Act (1964), and President Lyndon Johnson's executive order of 1964, which prevented age discrimination among federal contractors and subcontractors. However, federal legislation that directly affected age discrimination remained elusive despite the matter being featured in the Civil Rights Act debates of 1964. This was undoubtedly because of Congress's fear that any effort to address anything more than racial discrimination under the Civil Rights Act would cause the legislation to fail. Even so, over the next decade, age discrimination continued to be debated.

Between 1955 and 1965, 21 states plus Puerto Rico and the Virgin Islands passed laws that specifically addressed workplace discrimination on the basis of a person's age. However, in its report The Older American Worker, the United States Department of Labor explained that "inadequate funds and staff have limited the effectiveness of these laws in most states. Some have not been implemented at all." This report was a direct result of the Civil Rights Act of 1964, after Congress requested a labor study on age discrimination. The secretary of labor authorized and then distributed the report to Congress in 1965. The study revealed the increasing prevalence of employees 45 and older in the workforce and projected that this population would soon constitute more than a third of employees. Apprised of the sheer number of workers who would be vulnerable to age discrimination, the United States government gained a renewed interest in creating federal legislation to deal with this problem.

That legislation would come on 23 January 1967, in the form of the Age Discrimination in Employment Act (ADEA). Designed to protect the rights of employees aged 40 and older, ADEA prohibited employers from discriminating against employees on the basis of age in hiring, dismissal, status, compensation, terms, and privileges. The law was interpreted as also applying to the management of employment agencies and labor unions. Some limitations were set on the ADEA: only employees of companies with 25 or more workers in industries that affected commerce were protected under the law. In addition, employees 65 years or older were not covered by the ADEA, which strengthened the retirement age set by the Social Security Act.

The ADEA After 1967

ADEA evolved through several changes after President Johnson signed it into law. Two important amendments came in the 1970s. In 1974 an amendment lowered the company size minimum requirement of 25 employees to 20, and in 1978 another raised the age ceiling from 65 to 70. The 1974 amendment also extended the ADEA to protect local, federal, and state government employees, who were not covered previously. Almost as an afterthought, Congress passed the Age Discrimination Act (ADA) of 1975. This law covered age discrimination for both older and younger workers. However, the ADA was vague as a whole and lacked the teeth of the ADEA.

Key Players

Johnson, Lyndon Baines (1908-1973): U.S. president (1963-1969), Johnson did a great deal for the elderly during his term in the White House, including supporting the ADEA and the Older Americans Act (OAA) of 1965 and issuing an executive order that restricted age discrimination by federal contractors and subcontractors.

Roosevelt, Franklin D. (1882-1945): U.S. president (1933-1945), Roosevelt signed the Social Security Act into law in 1935. The act provided elderly retirees with old-age pensions.

Townsend, Francis E. (1876-1948): Townsend developed the"Townsend plan," which was in many ways the first version of the pension plan. Although his movement failed, it opened the debate about the elderly in the workforce.

See also: Civil Rights Act of 1964; Social Security Act.

Bibliography

Books

Axel, Helen. Employing Older Americans: Opportunities and Constraints. New York: The Conference Board, Inc., 1988.

Daniel, Clifton, ed. Chronicle of the 20th Century. Mount Kisco, NY: Chronicle Publications, 1987.

Friedman, Lawrence M. Your Time Will Come: The Law of Age Discrimination and Mandatory Retirement. New York: Russell Sage Foundation, 1984.

Kendig, William L. Age Discrimination in Employment. New York: American Management Associations, 1978.

United States Department of Labor. The Older American Worker: Age Discrimination in Employment.Washington: U.S. Government Printing Office, 1965.

Other

United States General Accounting Office. GAO/HRD-90-87BR. Age Discrimination: Use of Age-specific Provisions in Company Exit Incentive Programs.February, 1990.

Additional Resources

Edelman, Charles D., and Ilene C. Siegler. Federal Age Discrimination in Employment Law: Slowing Down the Gold Watch. Charlottesville, VA: The Michie Company, 1978.

—Lee Ann Paradise