Just 28% of workers age 55 and older who were laid off in the past year have found new jobs, according to a recent CareerBuilder survey. That’s compared to 71% for laid-off workers age 25 to 34.

The end result: A lot of “overqualified” workers are applying for jobs. The majority (63%) of laid-off workers older than 55 say they’ve applied for positions below the level of their previous job — and 44% say employers have told them they’re overqualified.

While the influx of experienced job seekers gives companies an opportunity to hire experienced talent at a low cost, it also opens a legal can of worms. Here’s some advice for hiring managers on how to avoid claims of age bias:

• Don’t ask interview questions about age, just about relevant experience.
• Avoid snap judgments about overqualified applicants – for example, don’t assume they’ll demand a high salary or will leave as soon something more prestigious comes up. Use the interview to learn those things.
• Don’t interview someone you know you won’t hire. It’s much easier for an interviewed applicant to sue than for someone who just sent in a resume.
• Consult with HR if someone asks why they weren’t hired.

As HR pros know, it’s not out of the question for candidates to inflate their past job titles and duties, or add academic degrees that were never completed.

But these days, many out-of-work managers are looking for stop-gap jobs and stretching the truth in a different way — by “dumbing down” their credentials so they don’t appear overqualified.

A lot of formerly high-up employees are willing to step a few rungs down the ladder just to get a steady paycheck. Often, that requires them to convince hiring managers they won’t jump ship the moment the market improves and something better comes up.

One way they’re doing that: changing job titles to look less impressive, according to the Wall Street Journal. For example, one marketing exec changed her previous jobs as “manager” and “trend researcher” to “staff” and “office support.”

Candidates are also hiding degrees and other academic achievements. One woman looking for temporary clerical work said she received no calls from employers until she stopped listing her master’s degree on her resume.

The best ways to spot this new type of dishonesty? The same ways HR and hiring managers catch other applicant lies — by asking probing questions during the interview and when checking references.

How concerned should employers be?

Many are worried because they want to avoid hiring overqualified employees, who might be disgruntled in lower-level work and may constantly have one foot out the door.

Others are less concerned about overqualification — but a lie is still a lie. If people are dishonest before they’re hired, how reliable will they be as employees?

What do you think? Have you caught any candidate with a “dumbed down” resume? Give us your opinion and experience in the comments section below.

These days, most companies get a flood of resumes for every open position they advertise — many of them from overqualified applicants who are newly in need of work. How can interviewers separate the ones who’ll quickly leave from the ones who are worth hiring?

Overqualified applicants can give companies a chance to get top-notch talent on the cheap — or it could just mean people are going to quit as soon as the kind of job they’re used to is available.

Here are some topics to address in an interview to see if a candidate will pose any problems:

1. “What would it take to keep you here?” — Retention is often a manager’s biggest concern when considering an overqualified applicant. But many times, that concern can be cleared up just by asking the candidate how the problem can be solved.
2. “What makes a job exciting to you?” — Another top worry is that candidates used to higher positions will be bored at a job with less prestige. In the interview, managers should find out what keeps the applicant interested in a job, and see if the answer fits the position.
3. “Tell me about a time you and your boss disagreed on how to get something done?” – Sometimes, the more experience people have, the more they’re used to doing things their own way — which can cause problems once the person lands in a new environment. That’s why interviews should see how a candidate reacts to disagreement and change.
4. “How much of this type of work did do in your previous job(s)?” — Sometimes, an overqualified applicant is a former manager trying to step down to a production-level job. That can be a problem if the person hasn’t done any hands-on work for several years.
5. “What are your long-term goals?” — The goal of most overqualified candidates is to get back to a job at a level similar to the one they left. Others are simply tired of management and want to stay at a lower level. It helps to find out the candidate’s expectations for advancement and consider whether the company can offer a compatible path.

Has your company hired any overqualified applicants lately? How did it work out? What did the hiring manager ask in the interview to make sure there would be no problems?

Share you experience in the comments section below.

Many companies are reluctant to hire overqualified applicants because they’re afraid the employees will be difficult or jump ship as soon as they find a job with the pay and prestige they’re used to. But some experts say those employees are often the best hires because they have a boatload of experience and make good candidates for future promotions.

So should you hire one of those candidates?

Of course, those decisions will need to be made on a case-by-case basis. But here are some things to keep in mind:

• Don’t ignore the issue. Many interviewers are afraid to talk about the concern. But asking them what your company would need to do to keep them satisfied will let you know what chance you have of hanging on to those employees.
• Consider people from other industries. Often, the best candidates are the overqualified employees who are switching businesses or making a career change. They’ll be provided with new challenges and will be looking to learn as much as they can about a new area — in contrast to someone moving down within the same field who may carry a “been there, done that” attitude.
• Show the path to advancement. If there’s a good chance overqualified employees will be candidates for promotions, let them know. Explain early on what paths employees in that job generally take. That will help you avoid having employees who feel like they’re stuck in a job they’re too good for — and let them know they won’t need to leave your company to get back to the upper level.

The facts: A company advertised an opening, saying it was looking for someone with five to seven years of relevant experience. A man sent in a resume, even though he’d worked in similar jobs for roughly 30 years. He was told he wasn’t a good fit for the position, and someone who fit the ideal range was hired instead. The man sued, claiming he was turned down because of his age.

The employer said: Like the HR rep told the candidate, he wasn’t the right fit because he was overqualified. The company didn’t want to hire someone at his level to do the basic work the job required. The fact that having more experience also meant that he was older than the person who got the job was incidental, and not the motivation for turning him down.

Who won? The employer.

Why: The court ruled that the company’s reasoning was legit. There are good reasons for not wanting to hire an overqualified candidate, and the man failed to prove that his age was the real motivator.

Courts have routinely turned down claims that finding someone to be overqualified is an automatic indicator of age discrimination. Many have acknowledged that the term can be used as a cover for discrimination. But when companies can show a legitimate business reason for turning someone down, they’re usually in the clear.

Cite: Reeves v. Kaiser Foundation Health Plan, Inc.