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330 North Wabash Ave.
Suite 1700
Chicago, Illinois 60611
312.755.3145
awilliams@agdglaw.com
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AGE
DISCRIMINATION
The
Age Discrimination in Employment Act covers private employers of
20 or more persons as well as state and local governments,
employment agencies serving covered employers, and labor unions
with 25 or more members. Age Discrimination in Employment Act of 1967 §2 et seq., 29 U.S.C.A. '
621 et seq. Under
ADEA, employers are forbidden to:
1.
Fail or refuse to hire, to discharge, or other
discriminate against any individual with respect to
compensation, terms, conditions, or privileges of employment
because of such individual's
age;
2.
Limit, segregate, or classify an employee in any way that
would deprive the employee of job opportunities or adversely
affect employment status because of age;
3.
Reduce the wage rate of an employee in order to comply
with the Act;
4.
Indicate any preference, limitation, specification, or
discrimination based on age in any notices or advertisements for
employment; and
5.
Operate a senior system or employee benefit plan that
requires or permits involuntary retirement.
An
employer can defend itself against an age discrimination charge by
showing that age is a bona fide occupational qualification for a
particular job.
HELP
WANTED NOTICES
Help
wanted notices or advertisements that contain terms that deter the
employment of older persons are prohibited.
Examples of such terms or phrases include: "age 25-35,"
"young,"
"college student,"
"recent
college graduate,"
"boy" or
"girl." Other phrases such as "40-50,"
Aage over 65,"
"retired
person,"
or "supplement your pension" discriminate against others in the
protected age group, i.e., 40 or older, and are therefore not
permissible either.
EMPLOYMENT
APPLICATIONS
Asking
for date of birth or age on a job application form does not, by
itself, violate ADEA. But,
as in the case of help wanted ads, such a request could deter older
persons from applying, and therefore will be closely scrutinized to
insure a lawful purpose. An
employer should make clear on the job application that the purpose
for requesting the information is not prohibited under the law.
For example, the application could state: "The
Age Discrimination in Employment Act of 1967 prohibits
discrimination on the basis of age with respect to individuals who
are at least 40 years of age,"
or some similar phrase indicating that age information will not be
used unlawfully.
UNLAWFUL
DISCHARGES
Employees
age 40 and over are protected by ADEA from adverse personnel actions
and are based on age rather than performance.
Moreover, an employer's
cost-cutting modem is not, in itself, a justifiable reason for
discharging or demoting an older worker.
For example, a discharged employee in the protected age group
is entitled to recover under ADEA if the worker's
age made "a
difference"
in the employer's
termination decision, the U.S. Court of Appeals at San Francisco
decided, upholding a $2.3 million age discrimination jury award.
The court concluded that there may more than one factor in a
decision to terminate an older worker, but the employer has violated
ADEA if age is a factor that made a difference in the employment
decision. Cancellier
v. Federated Department Stores, 28 FEP 1151, cert. denied, 31
FEP 704.
Cost-cutting
is not a legitimate, non-discriminatory reason for discharging an
older employee while retaining younger, lower paid employees.
Metz v. Transit Mix, 44 FEP 1339. However, employment decisions during a reorganization and
cutback in part based on high salary are not necessarily age bias.
The court reasoned that high salary and age may be related,
but so long as the employer's
decision views each employee individually, no general rule that
disparately impacts on older workers is imposed, and decisions are
based solely on financial considerations, ADEA is not violated. Bay v. Times Mirror Magazines, 56 FEP 407.
LAYOFFS
AND SEVERANCE PAY
In
paying severance benefits to employees when layoffs occur, employers
must face the problem of how to handle employees who are eligible
for pensions without violating ADEA.
Andrew
S. Williams
Aronberg Goldgehn Davis & Garmisa
330 North Wabash Ave
Suite 1700
Chicago, Illinois 60611
312/755-3145
awilliams@agdglaw.com
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