Many federal and state laws like the Age Discrimination in Employment Act prohibit discrimination on the basis of age when the alleged aggrieved party is age 40 or older. Rather than going through an expensive and time-consuming process, many parties agree to participate in mediation.

Mediation is an alternative to the litigation system. This informal process involves using a trained mediator who is tasked with assisting the parties to reach a mutually satisfactory agreement after a claim of discrimination or harassment is made. The mediator is not a judge or arbitrator; he or she does not impose a decision on the parties. Instead, he or she helps the parties reach a negotiated settlement and reconcile their differences.

Mediation can be scheduled early in the process before the parties become grounded in their adversarial positions. This allows them to resolve misunderstandings, clarify issues and explore options to resolve the matter before incurring significant legal expenses or negative ramifications because of the dispute. The mediation process involves the parties working together to satisfy their mutual goals.
The parties may be separated during part of the process during which time the mediator will discuss the weaknesses of their legal position and the potential consequences of continued litigation. This helps the parties have a better understanding of the stakes involved in their case and the real consequences of not reaching an agreement on their own terms.

In mediation, the parties are welcome to reach any agreement that is legal. They are not stunted by the limited remedies available in court. This factor may help them to agree to implementing new policies, reinstating a worker, transferring a worker or using some other creative solution to solve the problem.