The Mandatory Retirement Age Law of 1978 is a statute that was enacted by congress to protect aging workers against discrimination. Under this law, most firms are prohibited from requiring employees to retire before they reach 70 years of age. Certain industries are exempted for public safety reasons. Under FAA regulations, airline pilots must retire by age 65. Prematurely forcing a worker to retire has many negative outcomes. Removing a source of income can damage the financial retirement plans of an employee, and it is often too difficult for older workers to find work again after a layoff. The law also encourages firms to invest in an employee’s entire career instead of focusing on only the initial period of the work relationship.
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