A Louisiana based manufacturing and distribution company, J&M Industries, settled an EEOC lawsuit involving age discrimination. Under the consent decree, J&M will pay $105,000 to the former employee for back pay and liquidated damages. The company is also required to conduct training and revise policies to be in line with the Age Discrimination in Employment Act (ADEA). An attorney with the EEOC states, “this resolution serves the public interest.” Here’s what happened.
EEOC alleges age discrimination
According to the lawsuit, filed in U.S. District Court for the Eastern District of Louisiana, a manager repeatedly asked a 65-year-old employee about her retirement plans. The employee made it clear that she did not plan on retiring. J&M fired her by eliminating her position stating, “economic uncertainty.” One month later, the company hired a 30-year-old man as a new purchasing agent, the same position that was eliminated. The EEOC contends that this conduct violates the ADEA, which prohibits discrimination against people over the age of 40. J&M will have to report to the EEOC for 3 years about age discrimination in their business.
Can your business ask employees about retirement plans?
Asking older workers about their retirement plans is not against the ADEA. The ADEA prohibits using a person’s age in any aspect of employment. Forcing an older employee to retire once they hit a certain age is a violation of the ADEA.
As a business, you should be having career plan discussions with all employees as part of your succession and replacement planning. Keep this discussion focused on your business needs, not the person’s age or another protected class, (race, religion, gender, etc.). If you’re just asking out of curiosity, it might be better to leave it alone to avoid claims of age discrimination. Document any discussions. Be prepared for any employee to leave at any time, whether they might be retiring or moving on to a better opportunity.
Avoid age discrimination
Age discrimination against employees over 40 years old is pretty common. According to the AARP, over 40% of workers have experienced discrimination in the workplace. The EEOC offers information about age discrimination on their website. Don’t let the age of employees make an impact on your business decisions.
