Which Law Restricts Mandatory Retirement? ADEA and Its Exceptions

The federal law that restricts mandatory retirement is the Age Discrimination in Employment Act, known as the ADEA. Passed in 1967 and amended in 1986 to remove any upper age limit, it makes it illegal for most employers to push workers out of a job because of age. If you are 40 or older, your employer generally cannot set a retirement age and force you to leave when you hit it.¹

Under the ADEA, forcing someone to retire is treated the same as firing them. An employer who says “you’re 65, time to go” is breaking the same rule as one who fires a worker for being too old. Before Congress eliminated the upper age cap in 1986, employers could legally require retirement at 70. Since then, age alone has not been a lawful reason to end a career.²

Who Is Protected and Which Employers Must Comply

The ADEA covers workers who are 40 or older, with no ceiling. A 75-year-old employee has the same protection as a 45-year-old. Both current employees and job applicants are covered.³

On the employer side, the law reaches private companies and labor organizations with 20 or more employees, plus federal, state, and local government employers regardless of size.⁴ If your employer is private and has fewer than 20 workers, the federal ADEA does not apply, though a state law often does.

When Mandatory Retirement Is Still Legal

The ADEA’s ban is broad, but a handful of narrow exceptions survive. If your situation falls into one of these categories, an employer can lawfully require you to retire.

Bona Fide Occupational Qualification

An employer can set an age limit when age is genuinely necessary for safe and effective performance of the job. Federal regulations use the term “bona fide occupational qualification” and say it should be read narrowly.⁵ The employer must prove the age limit is reasonably necessary, not just convenient, and the exception usually appears in jobs with real public safety implications.

High-Level Executives

An employer can require retirement at age 65 for a worker who spent the two years right before retirement in a bona fide executive or high policymaking position. Two extra conditions apply: the employee must be entitled to an immediate, non-forfeitable annual retirement benefit of at least $44,000, and that benefit can come from any combination of the employer’s pension, profit-sharing, savings, or deferred compensation plans.³

The $44,000 figure is fixed by statute and is not adjusted for inflation.⁶ If the benefit is not a straight life annuity, or if the employee contributed to the plan, the amount must be converted to its annuity equivalent under EEOC rules before it is compared to the floor. A “director” title does not qualify a mid-level manager. The employee must actually exercise significant authority over a substantial part of the organization or independently set company policy.

Public Safety Officers

State and local governments can set mandatory retirement ages for firefighters and law enforcement officers, provided the age is at least 55 and the limit is part of a bona fide retirement plan rather than a pretext for age discrimination.⁷ This exception applies only to government employers, not private security companies.

Airline Pilots

A separate federal statute, not the ADEA, requires airline pilots in scheduled commercial operations to stop flying at age 65. The rule aligns with international standards set by the International Civil Aviation Organization.⁸ Legislative proposals to raise the limit to 67 have been introduced, but as of 2026 the FAA has not endorsed any increase.

What to Do If You Were Forced Out Because of Age

Before you can sue under the ADEA, you generally have to file a charge with the Equal Employment Opportunity Commission. The EEOC investigates the complaint and may attempt informal mediation before any lawsuit moves forward.

You have 180 calendar days from the discriminatory action to file. The deadline extends to 300 days only if your state has its own age discrimination law enforced by a state agency; a local ordinance alone does not extend it.⁹ Miss the deadline and the claim is generally barred for good. You can file through the EEOC’s online portal, in person, by mail, or by phone at 1-800-669-4000.

Remedies focus on making you financially whole. Courts can order back pay, front pay for future losses, reinstatement, or a wrongfully denied promotion. When the violation was willful, the court can add liquidated damages equal to the back pay award, roughly doubling the recovery.¹⁰ One gap worth knowing: the federal ADEA does not allow compensatory damages for emotional distress or punitive damages. Some state laws do, which is a common reason to pursue federal and state claims together.

Severance Agreements That Waive Age Claims

A forced exit often comes with a severance offer that asks you to release any age discrimination claim in exchange for money. The Older Workers Benefit Protection Act (OWBPA) amended the ADEA to set strict rules for these waivers. If the employer skips any of the requirements, the waiver is void, even if you already signed it and deposited the check.

A valid waiver must meet all of the following:¹⁰

Be written in plain language the average eligible employee can understand.
Refer specifically to rights under the ADEA.
Cover only claims that already exist, never future ones.
Offer something beyond what you were already owed.
Advise you in writing to consult an attorney before signing.
Give you at least 21 days to consider the agreement, or 45 days if it is part of a group layoff or exit incentive program.
Allow at least seven days after signing to revoke, with the agreement taking effect only after that window closes.

In a group layoff, the employer must also disclose the job titles and ages of everyone selected for the program and everyone in the same job classification who was not selected. That information lets you see whether older workers were disproportionately targeted.¹¹

State Laws Often Reach Further

The ADEA is a federal floor, not a ceiling. Many states protect workers at smaller employers, some down to a single employee, and some allow damages the federal law does not, including emotional distress and punitive awards. State filing deadlines vary, generally from 180 days to several years.

If your employer is too small for the ADEA to apply, state law may be your only route. Contact your state civil rights or labor agency to confirm the deadlines and the scope of coverage where you live.

1
U.S. Equal Employment Opportunity Commission. Age Discrimination in Employment Act of 1967
2
U.S. Equal Employment Opportunity Commission. Age Discrimination in Employment Amendments of 1986
3
Office of the Law Revision Counsel. 29 USC 631 – Age Limits
4
U.S. Equal Employment Opportunity Commission. Age Discrimination
5
eCFR. 29 CFR 1625.6 – Bona Fide Occupational Qualifications
6
U.S. Equal Employment Opportunity Commission. Section 2 Threshold Issues
7
Office of the Law Revision Counsel. 29 USC 623 – Prohibition of Age Discrimination
8
Office of the Law Revision Counsel. 49 USC 44729 – Age Standards for Pilots
9
U.S. Equal Employment Opportunity Commission. How to File a Charge of Employment Discrimination
10
Office of the Law Revision Counsel. 29 USC 626 – Recordkeeping, Investigation, and Enforcement
11
U.S. Equal Employment Opportunity Commission. Waivers and Claims Under the ADEA 29 CFR 1625.22