Human Services Company Must Pay More than $467,000 for Age Bias

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

MINNEAPOLIS – A federal judge has entered a consent decree requiring a human services department to pay $467,165 to resolve an age discrimination case filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced.

The consent decree entered by District Court Judge David S. Doty requires the department to pay $467,165 to 29 claimants who were denied employer contributions for retiree health and dental insurance because they were older than age 55 at the time they retired. The department also must offer to pay future premium costs for persons who would still be entitled to receive them but for the unlawful early retirement provision.

In its lawsuit, the EEOC contended the incentive plans contained in collective bargaining agreements for certain department employees violated the Age Discrimination in Employment Act (ADEA) because the incentive plan denied the employer contributions for premiums to persons over a certain age. In an earlier lawsuit involving the same incentive plans, U.S. District Court Judge Paul A. Magnuson held that the early retirement incentives are “facially discriminatory, and, as such, violate the ADEA.”

“The EEOC litigated and won on the issue of the illegality of this incentive plan,” said the EEOC’s regional attorney in Chicago, John Hendrickson. “We will continue to be on the lookout for similar plans, which essentially end up punishing people who want to work after a certain

The EEOC is responsible for enforcing federal laws prohibiting employment discrimination. Further information about the EEOC is available on its website at www.eeoc.gov.

To learn more about employment discrimination laws, or to protect your company with anti-discrimination training, please contact Berkshire Associates at 800.882.8904 or email bai@berkshireassociates.com.