This ADEA compliance checklist backs up the overview with rules, October 2026 numbers and recent changes for U.S. employers with India or Canada ties. Related: the ADA and Title VII.
What the law requires
| Requirement | In plain words |
|---|---|
| No age discrimination | Hiring, firing, pay, promotion, layoff, training and benefits for people 40 or older; no age-preference ads; no retaliation |
| Harassment | Frequent or severe age remarks, or ones leading to firing or demotion, are unlawful; isolated minor incidents are not |
| Neutral policies | Unlawful if they hit workers 40 or older harder, absent a reasonable factor other than age |
| Releases outside a filed charge or suit | Plain terms, no future claims, extra value, a written note advising consultation with a lawyer, a 21-day review period (45 days for a group program), 7 days to revoke |
| Records (EEOC rules) | Hiring and discharge files: kept 1 year. Payroll with birth dates: kept 3 years. Plan documents: plan life plus 1 year. See record retention. |
Key numbers and dates
| Item | Figure or date | Year or status |
|---|---|---|
| Coverage | Age 40 or older; employers with 20 or more employees for 20 weeks | Statute |
| EEOC charge | 180 days; 300 in a state that has both an age law and an agency, as in Illinois | 2026 |
| Suit window | May start 60 days after the charge; file within 90 days of the EEOC closing notice | 2026 |
Source: 29 U.S.C. 626; EEOC
Recent and pending changes
- October 27, 2025: the EEOC's voting quorum was restored.
- January 22, 2026: the Commission rescinded its 2024 harassment guidance on a 2 to 1 vote.
- 2023 to October 2026: no ADEA amendment found in our sources.
The named checklist: your ADEA compliance checklist
The Ad-to-Release Age-Neutral Round:
- Ad: scan ads and templates for "recent graduate" or "young."
- Choice: record the non-age reason for each hire, pay change or layoff.
- Layoff list: test whether the criteria hit workers 40 or older harder.
- Complaints: act on age remarks by supervisors or customers.
- Release: send a draft to an attorney early and count the review days.
- Records: keep birth dates and hiring files for the periods above.
Common mistakes
- Age-coded wording in ads or interviews.
- Choosing layoffs by age or a stand-in for age.
- A release short on review days, or one waiving future claims.
- Treating a retirement-age policy as automatic.
When to bring in an attorney
A CPA cannot answer these.
- A layoff or buyout affecting several workers aged 40 or older.
- Drafting any severance release or settlement.
- An EEOC or Illinois Department of Human Rights age charge. A worker's visa question is immigration advice.
How we can help
We handle the U.S. payroll, tax and accounting side, including birth-date payroll records and Form W-2 reporting, alongside your attorney, Canadian CPA or Indian CA. See payroll and employer compliance and bookkeeping and accounting.
Frequently asked questions
How many employees trigger the ADEA?
20 or more for 20 weeks in this or last year, above the 15 used by Title VII.
Are pain-and-suffering damages available?
No. Remedies are back pay, court orders, hiring or reinstatement, and a further equal amount when the violation was willful.
How long can a worker review a release?
21 days (45 for a group program), then 7 to revoke, for claims not yet in a filed charge or suit.
Is back pay subject to payroll tax?
Generally it is wages for Social Security and Medicare, on Form W-2 in the year paid. Interest, penalties and legal fees are not.
Official sources
- Cornell Legal Information Institute: 29 U.S.C. 626, Recordkeeping, investigation and enforcement
- eCFR: 29 CFR 1627.3, Records to be made or kept relating to age
- EEOC: Age Discrimination
- EEOC: Remedies for employment discrimination
- IRS: Publication 957, Reporting Back Pay and Special Wage Payments to the Social Security Administration
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.