A company has agreed to pay a former employee $105,000 in back pay and damages after her company of almost 20 years fired her for refusing to retire. J & M Industries, Inc., a manufacturing and distribution company based in Louisiana, has agreed to pay a former employee $105,000.
This follows an age discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC). The lawsuit outlined how a company manager reportedly badgered the woman about her retirement plans as she approached her 65th birthday.
Her manager constantly asked her, “When are you going to retire?” “Why don’t you retire at 65?” and “What is the reason you are not retiring?” Hence, the EEOC claims the company violated the Age Discrimination in Employment Act (ADEA) by firing an employee.
The Employment Act prohibits discrimination against individuals age 40 or older based on age. The woman, who remained anonymous, had worked with the manufacturing company as a purchasing agent for almost 20 years. The employee’s termination of employment followed her refusal to retire when she turned 65 years old.
The company reportedly informed her of the elimination of her job position as a purchasing agent when they fired her in May 2020. However, less than a month later, J & M Industries hired a 39-year-old man as a purchasing agent in her place.
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Following the lawsuit, the company denied firing the woman due to her age. The company also disputed replacing her with a 39-year-old man. They argued that the new employee had “broader, more significant duties than she did.”
However, the company acknowledges that they questioned the woman’s retirement plans for “succession planning” or simply as “stray remarks.” On February 1, 2024, J & M Industries announced a resolution to pay the former employee $105,000 in back pay and liquidated damages.
According to Rudy Sustaita, a regional attorney for EEOC’s Houston District Office, the settlement serves the public interest by providing relief for the former employee. The settlement will also aid in preventing age discrimination.
“It provides relief for the former employee and will help protect others from age discrimination,” he added. “We are pleased that the EEOC and J&M Industries were able to reach this resolution.” Also, Peter Theis, senior trial attorney for the EEOC New Orleans Field Office, said, “Age discrimination is wrong, and employers that discriminate against older workers violate the law.”
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Under the three-year consent decree settling the suit, J & M will not only pay the former employee. They will also conduct training and revise policies. Additionally, they will provide regular reports to the EEOC. The company will also post a notice confirming compliance with the ADEA law.
This case is an example of how age discrimination can affect older workers. Especially those who want to continue working beyond the traditional retirement age. According to the EEOC, age discrimination is one of the most common types of discrimination complaints filed by workers.
In fiscal year 2020, the EEOC received 14,183 age discrimination charges, accounting for 17.4% of all discrimination charges. This case serves as a reminder of the importance of adhering to anti-discrimination laws in the workplace.
Also, it emphasizes the consequences that companies may face if found in violation. In addition, the settlement highlights the need to protect the rights of older employees against age-based discrimination.
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