Suppose That an Employer Has an Informal Policy to Terminate

question 38

Essay

Suppose that an employer has an informal policy to terminate many,but not all,of its production workers as they approach the age of 40.The goal is to have only the best employees working once they reach age 40 because of the increased difficulty in terminating them after reaching age 40 due to the Age Discrimination in Employment Act.Is this action legal? Is it ethical?

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, which can own assets, incur liabilities, and sell stocks.

Organization Chart

A visual representation of the hierarchical structure of an organization, showing relationships between different positions and departments.

Delegation of Authority

The process by which authority is distributed to lower levels of management within an organization to make decisions and complete tasks.

Stockholders

Individuals or entities that own shares in a corporation, giving them ownership interests and typically rights to dividends and a vote in corporate matters.