There are several organizations that are doing this in my country, but for immigrants.
Of course they still might not hire the more experienced person because she is "overqualified".
1. Company X is smart enough to never record this illegal policy in documents/email/etc.
2. The policy is verbally communicated to all recruiters and many upper managers.
3. Company X is growing and employs hundreds of recruiters.
If the recruiter turn-over at company X is similar to other companies (i.e. it's pretty high), it's only a matter of time before a recently fired recruiter talks to a lawyer or the press.
The simpler thing to do is only advertise very low-level positions and pay new hires poorly enough that only new grads will apply in the first place. Of course, then you've got to develop the folks that you hire or have a model that is predicated on just throwing large numbers of people at problems.
https://www.fordfoundation.org/ideas/equals-change-blog/post...
You seem to be implying that a company that wanted to grow their workforce is better off actively filtering out people on the basis of their age. Why do you think that?
That's reflected in the very names of some organisations, e.g., "limited liability corporation". Incorporation is itself fundamentally a risk-control technology.
The permatemp lawsuit against MSFT ended up being completely counterproductive. Now temps have to take a "vacation" every X years for at least 100 days. So temps at MSFT have LESS job security after "winning" their lawsuit.
Be careful what you wish for - the laws of unintended consequences.