setting a mandatory retirement age?

junebug

Is it possible (with a good legal standing) to require employees other than officers of the company (who are the owners family) to retire at 65? I have a 67 year old who is becoming a real pain, and suddenly has carpal tunnel syndrome. She is an Accounts Payable clerk, and she is using this to pick and choose her tasks, in my opinion. I would like to have this made effective immediately, so she will be gone. Is this a problem? Thanks in advance for your help.

System

It is my understanding that you cannot require someone to retire at a certain age unless they are an upper level manager. You can offer them a retirement incentive, but it must be offered to all employees who are eligible for retirement. I believe they are given 7 days to decide whether that is what they want to do. If they choose not to take the package you must retain them. I would recommend you speak with your employment law attorney before implementing something like this because there are very specific guidelines you must follow.

On the other hand, if this person is having performance problems, then that needs to be addressed.

PMI

Sounds like trouble to me. I recommend addressing her performance directly. If she's not able to perform the job to the standards set (per the job description) even with reasonable accommodations, then you are free to let her go. Her age should be irrelevent. The problem is with this one individual employee--it doesn't make sense to make a change that effects the entire company to address an isolated performance problem. What happens if, down the road, you are forced to get rid of a star performer because he or she reaches 65 y.o.--do you ditch the rule, then re-establish it when you want to get rid of somebody else? Also, I would be very concerned about excluding officers from a mandatory retirement age rule. At best it seems inequitable -- at worst, and maybe someone with more legal expertise than I have will comment, it could result in some sort of unfair labor practice suit.

Gillian

If this person were an airline pilot or something else similar to that,you would be able to use 65 as a retirement age. Other than these areas, mandatory retirement policies are not legal. You have to address the performance issues.

Gar

I agree with PMI. This seems to be a performance and possible ADA matter. Deal with it as such and save yourself future headaches (age discrimnination complaints, etc.) regarding mandatory retirement. This isn't an easy way out but it has the least amount of risk.

Theresa Gegen TX

The federal age discrimination in employment act (ADEA) protects employees over the age of 40 from being treated differently based on their age. This would include forcing an older employee to go into early retirement. Most states have parallel laws and some with greater protection.

Worker's compensation laws in almost every state also provide protection for employees from retaliation (being treated differently because the employee filed a worker's compensation claim). I suspect the employee is claiming that the carpel tunnel is caused by her job. Therefore she has another level of legal protection.

Finally, the Americans with Disabilities act could protect the employee. Again, many states have parrallel laws, and some with greater protection.

This does not mean that the employer is helpless. But the employer must manage the situation in accordance with the law. Forcing early retirment is not a legal action. This is a case where a few hundred dollars spent meeting with an employment law attorney to develope a plan of action for managing the situation may be a wise course.

Good Luck!