Mandatory retirement sounds straightforward—reach a certain age, and you’re out. But ‌the reality is far more complicated. A forced retirement age could violate federal law.

Mandatory Retirement Age and the Law: What’s Allowed and What Isn’t

In most private sector jobs, mandatory retirement policies are illegal. The Age Discrimination in Employment Act (ADEA) is the federal law that protects workers age 40 and older from discrimination based on age. Passed in 1967, the ADEA covers hiring, firing, promotions, compensation, and other terms and conditions of employment—including retirement.

Under the ADEA, it’s generally unlawful for an employer to set a mandatory retirement age. Employers can’t pressure you to retire or push you out solely because you’ve hit a certain birthday. Even subtle efforts—like suggesting you “make room for younger talent” or nudging you into retirement talks without your consent—can raise legal concerns.

But there are exceptions. The ADEA does allow mandatory retirement for a few narrowly defined roles:

• Certain executives who are over age 65 and hold a “bona fide executive” or “high policymaking position” and receive a pension of at least $44,000 annually;
• Some public safety roles, such as law enforcement officers and firefighters, where age may be considered a legitimate occupational requirement.

Outside of these narrow exceptions, a company setting a retirement age—whether formally or informally—is likely breaking the law.

How Employers Try to Justify Mandatory Retirement Age

Despite clear legal boundaries, some employers still attempt to justify mandatory retirement with vague reasoning: “We need fresh ideas.” “It’s standard practice in our industry.” “It’s time for you to enjoy your golden years.”

None of these arguments hold up.

Workforce planning is not a legal defense for discrimination. An employer can’t fire someone just because they assume the employee is nearing retirement age or believe someone younger might be more productive. The ADEA doesn't allow assumptions about ability based on age, even if the employer believes they’re acting in the company’s best interest. Employers also can’t claim that older workers cost more or might have health issues. Courts have consistently held that cost-based or stereotype-based decisions are still age-based discrimination.

Even voluntary early retirement packages must be carefully structured. While it's legal for a company to offer incentives for voluntary retirement, those offers must be optional—and clearly so. Pressuring employees to accept such offers, or penalizing them for declining, crosses a legal line.

What You Can Do If You’re Facing Forced Retirement

If you’ve been told to retire—or believe you’re being steered toward it—start documenting everything. Dates, emails, conversations, performance reviews, and any comments about your age or retirement status all matter. These details can help build a case.

Next, ask direct questions. If you’re being told your role is ending, ask for a reason in writing. If the answer seems vague or inconsistent, that could signal discrimination. Also request a copy of your personnel file, which you have a right to review. You don’t need to wait until you’re officially terminated to act. In fact, the earlier you consult with legal counsel, the more options you may have. You may be entitled to reinstatement, back pay, front pay, or a settlement that accounts for both financial losses and emotional stress.

Time limits apply—and they vary depending on your job.

• If you’re in the private sector, you typically have 180 days to file a charge with the EEOC. That deadline may extend to 300 days if your state or local government enforces its own age discrimination laws.
• If you’re a federal employee or job applicant, the process is different and moves faster. You must contact your agency’s EEO Counselor within 45 days of the incident. If the issue isn’t resolved during counseling or mediation, you have just 15 days to file a formal complaint with your agency.

And if you’re being pushed into a retirement agreement, don’t sign anything without legal review. Many employers include waivers that limit your right to sue—often in exchange for severance.

Let’s Talk Before You Sign Anything

You’ve worked hard to build your career. If you’re facing forced retirement, age-based comments, or subtle pressure to step aside, Crowley So LLP can help you evaluate your options and take action. Contact us today to schedule a confidential consultation.