Aurora Tax CPA
Federal lawsUSCAIN

Age Discrimination in Employment Act: Cross-Border Guide

See how the Age Discrimination in Employment Act applies to foreign-owned and cross-border U.S. employers: coverage, EEOC deadlines, remedies and releases.

Last reviewed October 27, 2026 · 3 min read · General information, not legal advice

General information only, not legal advice. CPA Tax Payroll and Accounting Corp is a CPA firm, not a law firm. Laws change: confirm with the official source or a licensed attorney before you act. Read the full notice.

The Age Discrimination in Employment Act (ADEA) is the 1967 federal law that shields job applicants and employees aged 40 or older from age discrimination. Enforcement belongs to the EEOC, the U.S. Equal Employment Opportunity Commission. The page is written for owners of U.S. businesses with India or Canada ties, such as a foreign-owned company adding its twentieth employee near Aurora.

Slide show: The ADEA in seven slides

  1. What it is

    The ADEA (1967) bars age discrimination against applicants and employees aged 40 and older, and bars retaliation.

  2. Who it affects

    Employers with 20 or more employees. The EEOC enforces it.

  3. The rule

    Age may not drive decisions on hiring, firing, pay, layoffs or benefits, and ads may not signal an age preference.

  4. The deadline

    Charges are due at the EEOC within 180 days, or 300 in Illinois. A suit may start 60 days after the charge and no later than 90 days after the EEOC's closing notice.

  5. The money

    Back pay, and an equal sum on top of it for willful violations.

  6. The release

    A severance release of age claims, outside a filed charge or suit, needs a 21-day consideration period (45 days for a group program) and 7 days to revoke.

  7. The tip

    Many employers write down the non-age reason behind each hiring and layoff decision, and have an attorney draft any release.

Who does the Age Discrimination in Employment Act cover?

ItemRule
EmployerAn employer has 20 or more employees for each working day in at least 20 calendar weeks of the current or preceding year. Agents count, as do state and local governments. Employment agencies have no size test; some unions fall under tests of their own.
Who is protectedApplicants and employees aged 40 or older. Under-40 workers are not covered, though some state laws protect them.
Executive exceptionNarrow: forced retirement at 65 or older, for someone in an executive or high-policymaking position for the prior 2 years who has a retirement benefit that is immediate and nonforfeitable, paying at least $44,000 a year.
Private employer under 20 employeesNo ADEA coverage; state age laws may apply.

What the ADEA means for a foreign-owned or cross-border business

SituationWhat the law saysWhat to check
Foreign-owned employer with 15 to 19 staffThe ADEA threshold is 20, not 15.Weekly headcount. See the Illinois Human Rights Act.
Ad text copied from a head-office templateAds that signal an age preference are barred.Scan for "recent graduate" or "young."
Head-office retirement-age policyNo upper age limit; the executive exception to forced retirement is narrow.Ask an attorney before applying any age-based exit rule.
Downsizing the U.S. teamReleases of age claims have strict terms.Have an attorney draft the release.
Payroll fileEEOC rules under the ADEA call for birth dates in payroll records, kept 3 years.See the U.S. employer checklist.

Where to go next

ADEA rules and checklist has the numbers, changes and the Ad-to-Release Age-Neutral Round. Related: the ADA, Title VII and hiring U.S. employees from abroad.

Frequently asked questions

Are workers under 40 protected by the ADEA?

Not under federal law, though some state laws do.

Official sources

This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.