There are well documented declines in cognitive function with age, and there are also reliable relations between cognitive function and performance in the work environment. Despite these relations, there is not a reliable correlation between age and work performance. This article examines hypotheses that might explain this paradox. Hypotheses discussed include (a) older adults have jobs characterized by maintenance functions and rarely must learn new information, (b) experience protects older adults from decline in highly practiced cognitive tasks, (c) complex knowledge structures increase with age and compensate for decline in component processes of cognition, and (d) older adults have enhanced opportunities for environmental supports in the workplace which can compensate for cognitive decline. Implications of age‐related cognitive declines for training and human‐factors issues in the work environment are discussed.