Hearings to examine protecting older Americans, focusing on leveling the playing field for older workers.

Special Committee on Aging

2025-09-03

Source: Congress.gov

Summary

The Special Committee on Aging convened to discuss the pervasive issue of age discrimination in the workplace and explore legislative solutions to protect older Americans. The session highlighted the significant personal and economic tolls of discrimination, while also emphasizing the immense value that older workers bring to the economy and society. The discussion focused heavily on the role of forced arbitration as a barrier to justice and policy reforms aimed at fostering greater workforce engagement and flexibility for aging populations. [ 00:22:19-00:25:50 ] [ 00:26:23-00:26:26 ] [ 00:29:25 ]

Themes

Prevalence and Impact of Age Discrimination

Age discrimination is a widespread and detrimental issue, with 64% of workers aged 50 and older having experienced or witnessed it, and 90% believing it is commonplace in the workplace. [ 00:26:24-00:26:26 ] This discrimination can result in denied employment, overlooked promotions, or termination, leading to significant financial and emotional distress for individuals. [ 00:26:03-00:26:23 ] The problem is exacerbated as workers aged 75 and older represent the fastest-growing segment of the workforce, often compelled to continue working due to inadequate retirement savings. [ 00:26:29 ] The economic cost of age discrimination is substantial, estimated to drain $850 billion from the U.S. economy annually. Subtle forms of discrimination include employers stating a candidate is "overqualified" or seeking a "digital native" or "more energetic candidate."

The Problem of Forced Arbitration

Forced arbitration clauses present a major obstacle to justice for victims of age discrimination, frequently signed by employees without a full understanding or genuine consent. [ 00:26:50 ]

[ 00:26:58 ] These clauses prevent employees from litigating their cases in court, forcing them into a system that often favors employers, lacks transparency, and limits discovery. [ 00:27:05 ] [ 00:28:22 ] Arbitrators, compensated hourly and chosen by the parties, may have a financial incentive to rule in favor of employers who are repeat clients. The proposed "Protecting Older Americans Act" (POAA) seeks to invalidate these clauses for age discrimination claims, thereby giving workers the choice to pursue justice in court. [ 00:27:32 ] [ 00:27:37 ] The successful banning of forced arbitration for sexual harassment and assault has not led to an anticipated surge in lawsuits, suggesting that similar concerns for age discrimination cases may be unfounded.

Value of Older Workers and Removing Barriers

Older Americans are vital contributors to both the economy and society, offering valuable wisdom, experience, and mentorship to younger generations. Their sustained engagement, whether through paid employment, caregiving, or volunteering, significantly improves physical health, mental resilience, and overall life satisfaction. However, existing public policies, such as Social Security's retirement earnings test, discourage work by imposing high effective tax rates on earnings for individuals aged 62 to 66. Eliminating these and other regulatory barriers, along with promoting flexible work arrangements, could stimulate economic growth, alleviate poverty, and enhance health outcomes for older adults.

Workplace Flexibility and Just-in-Time Scheduling

Last-minute schedule changes, a common feature of "just-in-time scheduling" practices, pose considerable difficulties for workers of all ages, especially for older employees and caregivers with responsibilities such as medical appointments or family care. [ 01:22:31-01:22:39 ]

Although employers contend with unpredictable demand, the current system often places the entire burden and financial risk of these scheduling fluctuations on employees. Legislative proposals like "Schedules That Work" aim to grant employees the right to request flexible schedules without fear of retaliation and to ensure compensation for last-minute changes or cancellations. [ 01:27:01 ] [ 01:27:06 ]

Tone of the Meeting

The meeting was conducted with a serious and generally bipartisan tone, as members from both sides of the aisle recognized the critical importance of addressing age discrimination. [ 00:22:19 ] [ 00:25:47 ] Speakers expressed empathy for older Americans experiencing discrimination and financial hardship, underscoring the invaluable contributions they make. [ 00:25:59-00:26:09 ] While there was widespread agreement on the existence of the problem, the discussion also featured a respectful debate concerning the practical implications of proposed solutions for small businesses and the broader legal system.

Participants

Transcript

Chairman Scott, thank you so much for providing me with the opportunity to discuss this incredibly important topic, age discrimination.  And thank you to our witnesses for being here today, for fighting for the rights of older Americans and their families.   You all know what it can be like to spend a lifetime working hard, building your career, and contributing to our economy.  And you can imagine how devastating it can be to experience discrimination because of how old you are.  Nobody wants to feel like their contributions don't matter, especially not because of some arbitrary characteristic like age.   But far too often, older workers are being denied employment, passed over for promotions, or even fired because of their age.  According to research conducted by AARP, 64% of workers age 50 plus have seen or experienced some form of age discrimination in the workplace.  And of that population, 90% believe that age discrimination against older workers is commonplace in the workplace.   In that same report, more than one in five older Americans said that they worried they were being pushed out of their job because of their age.  This comes as Americans have started working later in life with workers who are over 75 years old becoming the fastest growing age group in the workforce.  Just ask the U.S.  Senate.   In a time when the population of older Americans is growing and many are returning to the workforce, we need to make sure that those who face age discrimination can have their day in court.  Victims of age discrimination often can't seek justice or accountability in court because of forced arbitration clause that they signed when they were hired.  Many employees are not even aware that their employment contract contained a forced arbitration clause.   It traps those who experience workplace discrimination in a system that advantages their employer, preventing them from seeking information that could prove their case.
and victims are left at the hands of an extrajudicial arbitrator who is often selected by the employer and not always a trained lawyer.  It's no surprise that employees are often less likely to win in arbitration than they are in court.  Building on our successful effort to ban forced arbitration in cases of sexual harassment and sexual assault,   Senator Lindsey Graham and I introduced the Protecting Older Americans Act, which would invalidate forced arbitration clauses in cases of age discrimination as well.  It would also allow those who have experienced age discrimination the option to file their case in court if they choose, even if they previously signed a forced arbitration clause.  It gives them a voice in a process and the ability to seek justice.   If employees decide, though, that they would like to pursue arbitration when they have faced age discrimination, they can.  The point is that employees will now have this fundamental choice.  The crux of the issue is that despite the fact that the workplace age discrimination is categorically illegal and that Congress has already passed laws to protect older Americans from it, forced arbitration clauses subvert justice.  They take away your constitutional right to a jury decision.   without you knowing about it.  They allow employers to hide illegal conduct behind closed doors.  And they shield those who have committed serious misconduct from the public eye.  But now we have an opportunity for broad bipartisanship at a time when many Americans feel Congress is too divided to get things done.  I look forward to hearing from our witnesses today, as well as discussing these critical issues.  Thank you, Mr. Chairman.