In 1967, congress enacted into law the Age Discrimination in Employment Act of 1967 (ADEA), which makes it illegal to discriminate in employment on the basis of age (ADEA, 1967). Congress found age discrimination in employment problematic to a healthy economy; in fact the law proclaims that “the existence …show more content…
For example, the mandatory retirement age for commercial pilots is legal because it is deemed a bona fide occupational qualification; employers can even offer incentives to influence workers to retire early (Lau & Johnson, 2011). However, when employers reduce benefits if workers do not retire at set age limits as compared to those who do, ethical issues arise. In Equal Employment Opportunity Commission v. Minnesota Law Enforcement Association, 2011, an Early Retirement Incentive Program (ERIP) contained a provision that took away employer paid insurance premium contributions if workers did not retire at age 55, causing failure to satisfy the ADEA’s ERIP safe harbor rule because it was inconsistent with the ADEA’s relevant purpose (Id. At 1042). Ethical ERIP’s should influence by reward, as opposed to manipulate by threat of