According to the U.S. Census Bureau, by 2020, 25 million Baby Boomers, who make up more than 40 percent of the U.S. labor force, will be exiting the work force in large numbers. http://www.dol.gov/odep/pdf/NTAR_Employer_Strategies_Report.pdf. With many of the most experienced employees poised to leave the work force in the coming years, many employers are, or soon will be, facing the need to plan for this seismic demographic shift.
Courts have long recognized that employers have a legitimate interest in planning their future work force, and identifying and grooming successors for the current leadership is a necessary exercise that does not, by itself, violate the law. However, because the successors typically are younger than the senior leaders they replace, succession planning should be undertaken with an eye toward the potential legal issues that may arise, particularly age discrimination claims.
