What does ADEA stand for regarding employment laws?

Study for the Texas PACT Business and Finance 776 Test. Practice with flashcards and multiple-choice questions. Boost your confidence and knowledge to excel in your exam!

The term ADEA stands for the Age Discrimination in Employment Act. This federal law was enacted in 1967 to protect workers aged 40 and older from discrimination in the workplace based on age. It prohibits employers from making employment decisions based on an individual's age, including hiring, promotion, discharge, compensation, or terms of employment. The act aims to promote equality in employment opportunities for older workers and has been a critical piece of legislation in combating ageism in the workplace.

Understanding the significance of the ADEA is essential for both employers and employees. For employers, it emphasizes the importance of fair employment practices and the legal ramifications of discriminatory actions. For employees, it provides a legal recourse should they face age-based discrimination, fostering an environment where individuals can contribute their skills and experience without facing bias related to their age.

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