A former employee who had worked for nearly 20 years at a manufacturing and distribution company in Louisiana was awarded $105,000 in back pay and damages after being fired when she refused to retire at the age of 65. The US Equal Employment Opportunity Commission (EEOC) filed a discrimination lawsuit, stating that the company violated federal age discrimination laws.
The Age Discrimination in Employment Act (ADEA) prohibits discrimination against individuals aged 40 or older based on age. According to the lawsuit, a company manager repeatedly questioned the employee about her retirement plans as she approached her 65th birthday. When she stated that she had no immediate plans to retire, the company claimed that her role was being eliminated due to economic uncertainty.
However, the EEOC found that the company hired a man in his 30s for the same role within a month. The company disputed the age discrimination claims and stated that the replacement had broader and more significant duties. As a result of the lawsuit, the company agreed to a three-year consent decree, paying $105,000 in back pay and damages, providing training, revising policies, submitting regular reports to the EEOC, and posting a notice affirming compliance with the ADEA.
Regional attorney Rudy Sustaita from the EEOC's Houston District Office stated that this resolution will help protect others from age discrimination and expressed satisfaction with the agreement between the EEOC and J&M Industries. J&M Industries did not immediately respond to Business Insider's request for comment.