Company Fired Employee on His 70th Birthday Under Illegal Mandatory Retirement Policy, Federal Agency Charged.”
Earlier this week the EEOC issued a press release regarding a lawsuit they filed in November of last year. According to the EEOC suit (Civil Action No. 4:10-cv-04783 in U.S. District Court for the Southern District of Texas, Houston Division), Metallic Products Corp. had an unlawful mandatory retirement policy in place. The policy required that employees retire once they reached 70 years of age. The employee, Jeronimo Vidals, was advised prior to reaching his 70th birthday that he would be required to retire. Then his birthday rolled around and he was fired pursuant to the unlawful mandatory retirement policy.
The Age Discrimination in Employment Act was signed into law in 1967. Under ADEA, employers are forbidden to refuse to hire, to discharge, or to discriminate against anyone with respect to the terms, conditions or privileges of employment because of the person’s age. The law covers workers who are 40 years of age and older. And, the employer must have at least 20 employees to be covered by ADEA. It is important to note that age discrimination involves more than hiring and firing. It also can include violations such as salary reductions applied unfairly to older employees.
The EEOC and Metallic Products Corp. reached an agreement this month. That agreement cost Metallic Products $60,000 to settle this age discrimination suit. As part of the settlement, Metallic Products is required to rewrite all policies, handbooks etc., eliminating any reference to the unlawful policy. Additionally, a bit of training is in store for all personnel that make employment decisions at Metallic Products Corp. And I mean personnel all the way up the chain to their Board of Directors.
From a logical standpoint, as the workforce in the USA continues to mature, age discrimination is going to be of increasing concern. As an employer you should review your policies carefully. If you have a mandatory retirement policy in place, there is a BIG chance that it is going to be in violation of ADEA. There are exceptions, but they are rare, that an employer can force an employee to retire at a specific age (e.g. airline pilots*). Additionally, employers are allowed to apply age limits to certain jobs. However, it is often very difficult for an employer to prove age requirements. Such limit must be based on what is called a “bona fide occupational qualification (BFOQ). In this instance, for example, some physical aspects of the job could not be performed by people of certain age groups.
As an employer, you should have a clear HR policy that reflects the company philosophy, and actions for enforcement, on age discrimination. As with any policy, always ensure that it is consistently applied. Clearly communicate the policy to all employees, frequently, and ensure that your managers and supervisors understand, support and enforce the policy. Where necessary, provide training to all employees so that employees can recognize the various forms of age discrimination and respond properly. Review your policies, statements, job advertisements, etc., for any potential form of age discrimination. Ensure your applicant screening process and interview process is consistent with all candidates. Please remember, employers should always hire a person based on their skills and abilities. Nothing more, nothing less.
* In 2007 President Bush signed a bill raising the retirement age for commercial pilots to 65 from 60. (Public Law 110-135)
Earlier this week the EEOC issued a press release regarding a lawsuit they filed in November of last year. According to the EEOC suit (Civil Action No. 4:10-cv-04783 in U.S. District Court for the Southern District of Texas, Houston Division), Metallic Products Corp. had an unlawful mandatory retirement policy in place. The policy required that employees retire once they reached 70 years of age. The employee, Jeronimo Vidals, was advised prior to reaching his 70th birthday that he would be required to retire. Then his birthday rolled around and he was fired pursuant to the unlawful mandatory retirement policy.
The Age Discrimination in Employment Act was signed into law in 1967. Under ADEA, employers are forbidden to refuse to hire, to discharge, or to discriminate against anyone with respect to the terms, conditions or privileges of employment because of the person’s age. The law covers workers who are 40 years of age and older. And, the employer must have at least 20 employees to be covered by ADEA. It is important to note that age discrimination involves more than hiring and firing. It also can include violations such as salary reductions applied unfairly to older employees.
The EEOC and Metallic Products Corp. reached an agreement this month. That agreement cost Metallic Products $60,000 to settle this age discrimination suit. As part of the settlement, Metallic Products is required to rewrite all policies, handbooks etc., eliminating any reference to the unlawful policy. Additionally, a bit of training is in store for all personnel that make employment decisions at Metallic Products Corp. And I mean personnel all the way up the chain to their Board of Directors.
From a logical standpoint, as the workforce in the USA continues to mature, age discrimination is going to be of increasing concern. As an employer you should review your policies carefully. If you have a mandatory retirement policy in place, there is a BIG chance that it is going to be in violation of ADEA. There are exceptions, but they are rare, that an employer can force an employee to retire at a specific age (e.g. airline pilots*). Additionally, employers are allowed to apply age limits to certain jobs. However, it is often very difficult for an employer to prove age requirements. Such limit must be based on what is called a “bona fide occupational qualification (BFOQ). In this instance, for example, some physical aspects of the job could not be performed by people of certain age groups.
As an employer, you should have a clear HR policy that reflects the company philosophy, and actions for enforcement, on age discrimination. As with any policy, always ensure that it is consistently applied. Clearly communicate the policy to all employees, frequently, and ensure that your managers and supervisors understand, support and enforce the policy. Where necessary, provide training to all employees so that employees can recognize the various forms of age discrimination and respond properly. Review your policies, statements, job advertisements, etc., for any potential form of age discrimination. Ensure your applicant screening process and interview process is consistent with all candidates. Please remember, employers should always hire a person based on their skills and abilities. Nothing more, nothing less.
* In 2007 President Bush signed a bill raising the retirement age for commercial pilots to 65 from 60. (Public Law 110-135)
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