The Age Discrimination Act of 1967 prohibits age discrimination against employees age 40 and over. It ensures that people in this category cannot be discriminated against in the areas of pensions and benefits, promotions, wages, firings and layoffs, and even mandatory layoffs. This federal law applies only to businesses with 20 or more employees who conduct interstate commerce. Other state laws may address age discrimination in smaller companies as well. Once a claim of age discrimination is filed, the first step is to attempt conciliation and restoration of what was taken from the employee. If this fails, civil action is possible. The penalties for discrimination are generally reinstatement and back pay. If that is not feasible or if the employer's discrimination is found to be willful, the age discrimination act allows for damages to be awarded to the plaintiff.