Telecommunications Giant Settles EEOC Age Discrimination Lawsuit

Source: U.S. Equal Employment Opportunity Commission (EEOC)

NEW YORK – A leading telecommunications giant has agreed to cease discriminatory policies to settle an age discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission, the agency announced.

The EEOC had charged the company, and a number of its subsidiaries, discriminated against a class of retired workers by denying them the opportunity for reemployment solely because they retired under certain early retirement or enhanced severance programs. This practice violated the Age Discrimination in Employment Act (ADEA), the EEOC said. According to the EEOC’s lawsuit, individuals who participated in the Voluntary Early Retirement Incentive Program (VRIP – a company program from 1998-1999), the Enhanced Pension and Retirement Program (EPR – a pre-merger program from 2000 to 2001), and the Change-in-Control Program (CIC – a pre-merger program conducted in connection with the merger) were restricted from being reemployed or engaged as contractors because they took one of these retirement packages.

The EEOC filed suit in U.S. District Court for the Southern District of New York on Aug. 20, 2009, after first trying to reach a pre-litigation settlement through its conciliation process. The company denied the allegations in the lawsuit, but agreed to change its policies related to the reemployment of retirees.

The consent decree settling the suit, entered on October 25, 2011 by U.S. District Judge J. Paul Oetken, prohibits the company from maintaining any policy that excludes from reemployment of employees who left under one of the early retirement plans. The decree also prohibits the company from requiring a different process for selecting retirees than any other former employees.

“Many former employees who took an early retirement package years ago still need work, and will now have an equal opportunity to apply for new jobs at (the company),” said Anna M. Pohl, a trial attorney in the EEOC’s New York District Office. “(The company) is to be commended for changing its policies and working with the EEOC to resolve this case.”

Elizabeth Grossman, regional attorney for the EEOC’s New York District Office, added, “All employees, regardless of their age, should be permitted to compete for jobs equally. That is the fundamental right the ADEA grants to older workers.”

According to company information, the Dallas-based company is the largest telecommunications company in the world by revenue, with $123 billion reported in 2009.

The EEOC enforces federal laws prohibiting employment discrimination. Further information about the EEOC is available at www.eeoc.gov.

To learn more about employment discrimination laws, or to protect your company from potential liability with the latest updates and training, please contact Berkshire Associates at 800.882.8904 or email bai@berkshireassociates.com.