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View Full Version : Threshold Eased for Age-Bias Lawsuits


wendersfan
03-31-05, 10:30 AM
I'm wondering if some of the legal experts here could weigh in on this decision. I heard about the decision yesterday on <i>All Things Considered</i>, but I was driving in rush hour traffic and didn't pay much attention to the report by Linda Werthheimer.
<hr>
<a href = "http://www.washingtonpost.com/wp-dyn/articles/A12699-2005Mar30.html"><b>Threshold Eased for Age-Bias Lawsuits</b>
Claims Not Dependent On Employer Intent, Supreme Court Rules</a>

By Charles Lane
Washington Post Staff Writer
Thursday, March 31, 2005; Page A01

The Supreme Court made it easier to sue for age discrimination on the job yesterday, ruling that older workers may take their employers to federal court even in cases in which the alleged adverse impact on them was not intentional.

A five-justice majority said the federal Age Discrimination in Employment Act (ADEA), which protects all workers older than 40, permits a limited range of "disparate impact" lawsuits, or claims that older workers are disproportionately harmed by policies an employer applies to its entire workforce.

Such claims, which have long been permitted for racial discrimination but which had been frowned upon by most federal appeals courts in the context of age, are generally easier to prove than charges of intentional discrimination, legal analysts said.

The court's decision comes when the last of the baby boomers are in their forties. Just over half of the nation's 147 million-member labor force is 40 or older, according to the Bureau of Labor Statistics.

However, age-discrimination complaints have not necessarily been rising. The Equal Employment Opportunity Commission received 17,837 complaints in fiscal 2004, compared with 19,124 in fiscal 2003. Very few resulted in litigation, however.

Advocates for the elderly said the court's ruling means employers will have to take greater care to show that policies such as pay-scale adjustments or layoffs do not unreasonably affect older members of their workforce.

Job cutbacks through early retirement "buyouts" are sometimes the subject of age-discrimination complaints. But amendments to the ADEA in 1986 eliminated mandatory retirement ages, except for certain top executive positions and public safety jobs.

"I don't think there is going to be a landslide of suits in the district courts, but in those appropriate cases where there is a disparate impact against older workers, workers will be able to bring them," said Laurie McCann, senior attorney for AARP Foundation Litigation.

But employers said the decision will impose higher legal and administrative costs on them, with little real benefit to workers.

"It is alarming because they have opened the door to a whole mass of new litigation, and it's going to be expensive . . . even though employers will probably win," said Ann E. Reesman, general counsel of the Equal Employment Advisory Council, an organization of more than 330 large private employers.

Four members of the court majority -- Justices John Paul Stevens, David H. Souter, Ruth Bader Ginsburg and Stephen G. Breyer -- based their conclusion in the case, Smith v. City of Jackson, No. 03-1160, on the text of the ADEA, which was adopted in 1967.

They argued that its language was similar to provisions of the 1964 Civil Rights Act that barred job discrimination based on race -- provisions the court has read to permit disparate-impact suits.

Justice Antonin Scalia concurred on the outcome but did not accept the other justices' reasoning. He cited instead that the EEOC had already interpreted the ADEA to permit disparate-impact suits, and said the court should defer to that agency's view.

Still, all five members of the majority agreed that disparate-impact suits based on age discrimination should be more limited than racial discrimination suits. Older employees must identify a specific policy or practice that harmed them, they ruled.

This limitation was necessary, Stevens wrote, because the ADEA allows employers to treat older workers differently because of "reasonable factors other than age."

"Age, unlike race or other classifications protected by [the Civil Rights Act], not uncommonly has relevance to an individual's capacity to engage in certain types of employment," Stevens wrote.

Accordingly, Stevens wrote, the majority agreed with a federal appeals court that the case of 30 police department employees in Jackson, Miss., before the court should be dismissed.

The employees had said that a new pay plan gave greater raises to officers younger than 40 than to older officers. But, Stevens wrote, this was an "unquestionably reasonable" attempt by the city to keep its police salaries competitive with those of nearby jurisdictions.

Justice Sandra Day O'Connor dissented, joined by Justices Anthony M. Kennedy and Clarence Thomas. "Congress did not intend to authorize [disparate-impact] claims," she wrote.

However, O'Connor's opinion did express agreement with the majority that, if such claims are to be allowed, then they should be "strictly circumscribed."

Chief Justice William H. Rehnquist did not participate in the case; it was argued in November, when he was receiving aggressive treatment for thyroid cancer.

Red Dog
03-31-05, 11:19 AM
Open the floodgates for more lawsuits.

The lesson - if you own a business, fire people before they turn 40. ;)

wendersfan
03-31-05, 11:25 AM
The lesson - if you own a business, fire people before they turn 40. ;)That was the gist of what I took away from the <i>ATC</i> report. :lol:

bhk
03-31-05, 11:45 AM
"It is alarming because they have opened the door to a whole mass of new litigation, and it's going to be expensive . . . even though employers will probably win," said Ann E. Reesman, general counsel of the Equal Employment Advisory Council, an organization of more than 330 large private employers.

Rest assured, no matter who wins, the lawyers will make money. IMO this is a poor ruling because the plaintiffs don't have to show that their employer intentionally discriminated against them to bring a lawsuit.
ruling that older workers may take their employers to federal court even in cases in which the alleged adverse impact on them was not intentional.

classicman2
03-31-05, 12:17 PM
Age discrimination can not & will not be tolerated.

I see no problem discriminating against you young whippersnappers.

IMO this is a poor ruling because the plaintiffs don't have to show that their employer intentionally discriminated against them to bring a lawsuit.

Do you have to show that the employer intentionally discriminated against you if you're black?

wendersfan
03-31-05, 12:19 PM
Do you have to show that the employer intentionally discriminated against you if you're black?No, which is IIRC one of the justifications for this latest ruling.

Red Dog
03-31-05, 12:21 PM
Do you have to show that the employer intentionally discriminated against you if you're black?


No, and that is a load of crap too. :lol:

al_bundy
03-31-05, 12:23 PM
I did some research on disparate impact for a class a few months ago. I don't have a problem with it. The company can make any policy they want as long as there is a business need behind it.

classicman2
03-31-05, 12:26 PM
No, and that is a load of crap too. :lol:

Do you realize how difficult it would be to prove that your employer discriminated against you because of your color or age?

Red Dog
03-31-05, 12:30 PM
Do you realize how difficult it would be to prove that your employer discriminated against you because of your color or age?


As someone who continually bashes lawyers, this statement is very surprising. I think it wouldn't be that hard at all to win such a case or get a hefty settlement (not necessarily proving any discrimination).

Venusian
03-31-05, 12:31 PM
Ain't to hard to show people are discriminating against me because of my age. I can't rent a car. I have to pay extra for insurance - not because of my record, because they generalize people my age. Black people, statistically, have higher debt and defautl on loans more, but a bank can't charge someone a higher rate just because they are black. Yet, insurance companies can charge me more on premiums because of my age? messed up

classicman2
03-31-05, 12:35 PM
Ain't to hard to show people are discriminating against me because of my age. I can't rent a car. I have to pay extra for insurance - not because of my record, because they generalize people my age. Black people, statistically, have higher debt and defautl on loans more, but a bank can't charge someone a higher rate just because they are black. Yet, insurance companies can charge me more on premiums because of my age? messed up

Why do they charge you more money? Your age group has more accidents.

Using your reason - why should an insurance company charge me more for a life insurance policy than they do you?

bhk
03-31-05, 12:40 PM
Why do they charge you more money? Your age group has more accidents.
Why don't companies like to hire older people? They get sick more and use up more money for healthcare. Why don't corporations like to hire women? They get pregnant and then take 2 months off of work. This may not be paid leave but the company has to hire and train someone to do the work. See what I mean.

Venusian
03-31-05, 12:41 PM
and black people default on loans more than white people. is it legal for banks to charge them higher interest rates?


they charge your more for life insurance because (at least in theory) you are less healthy than I am. same reason they should charge me more if my driving record is worse than yours but if we have the same driving record they should charge us the same

classicman2
03-31-05, 12:48 PM
Why don't companies like to hire older people? They get sick more and use up more money for healthcare. Why don't corporations like to hire women? They get pregnant and then take 2 months off of work. This may not be paid leave but the company has to hire and train someone to do the work. See what I mean.

Older workers may get sick, but which group of workers use the most sick leave? Which group of workers miss the most work? I'll give you a hint - it's not the older workers.

classicman2
03-31-05, 12:52 PM
they charge your more for life insurance because (at least in theory) you are less healthy than I am. same reason they should charge me more if my driving record is worse than yours but if we have the same driving record they should charge us the same

The statistics show your age group has more accidents.

An 60 year old individual may be in perfect health, and yet may considerably more life insurance premium for an unhealthy 35 year old.

Therefore, what's your point?

bhk
03-31-05, 01:27 PM
Older workers may get sick, but which group of workers use the most sick leave?
I'm not talking about sick leave. I'm talking about increasing the cost of health insurance for the employer.

Venusian
03-31-05, 01:30 PM
The statistics show your age group has more accidents.

An 60 year old individual may be in perfect health, and yet may considerably more life insurance premium for an unhealthy 35 year old.

Therefore, what's your point?

then that's not right. your rates should be based on your likelyhood of needing the insurance. if the 35 year old is more likely to die, he should have to pay more....the same with car insurance

Ranger
03-31-05, 04:00 PM
Any opinions on this case?
http://www.theneworleanschannel.com/news/4335235/detail.html

I think my view is that private businesses should be allowed to discriminate all they want. BUT federal employees and employees of an establishment (public schools, hospitals, universities, etc) receiving any amount of federal funding should not be discriminated against. States should be encouraged to have similar measures also.

al_bundy
03-31-05, 04:09 PM
then that's not right. your rates should be based on your likelyhood of needing the insurance. if the 35 year old is more likely to die, he should have to pay more....the same with car insurance

they are

insurance companies look at statistics and charge people based on what they believe their risk is. Unfortunately no one has a crystal ball where they can predict an individuals chances of anything.

classicman2
03-31-05, 04:17 PM
Any opinions on this case?
http://www.theneworleanschannel.com/news/4335235/detail.html

I think my view is that private businesses should be allowed to discriminate all they want. BUT federal employees and employees of an establishment (public schools, hospitals, universities, etc) receiving any amount of federal funding should not be discriminated against. States should be encouraged to have similar measures also.

Therefore you must believe that a business should be permitted to refuse service to African Americans; and, therefore you don't think much of the Civil Rights Law of 1964.

Second: Why should it be mandatory for the federal government but the states should only be encouraged to have similiar measures also? :rolleyes:

Venusian
03-31-05, 04:18 PM
they are

insurance companies look at statistics and charge people based on what they believe their risk is. Unfortunately no one has a crystal ball where they can predict an individuals chances of anything.
except people have driving records and health records

Red Dog
03-31-05, 04:22 PM
Therefore you must believe that a business should be permitted to refuse service to African Americans; and, therefore you don't think much of the Civil Rights Law of 1964.

Second: Why should it be mandatory for the federal government but the states should only be encouraged to have similiar measures also? :rolleyes:


YES!

And I agree that the EP clause would apply to the fed and state as employers.

Ranger
03-31-05, 04:24 PM
Therefore you must believe that a business should be permitted to refuse service to African Americans...
Like a hip-hop club refusing to admit whites? :)

Second: Why should it be mandatory for the federal government but the states should only be encouraged to have similiar measures also? :rolleyes:
state taxes v. federal taxes. I think the feds have to set an example first, and states should have some sovereignty over how they run their governments.

classicman2
03-31-05, 04:27 PM
Ranger,

Please see Red Dog's post.

The Equal Protection Clause of the XIV Amendment applies to both federal and state governments.

Therefore, please rethink your state sovereignity argument. ;)

Red Dog
03-31-05, 04:28 PM
Like a hip-hop club refusing to admit white males? :)


Fixed.

bhk
03-31-05, 04:33 PM
Originally Posted by Ranger
Like a hip-hop club refusing to admit white males who don't wear their pants with the waist at the knees?
Fixed even better.

classicman2
03-31-05, 04:35 PM
Had I been a justice on the SC I would probably have voted that the Civil Rights of 1964 was unconstitutional.

Had I been a justice on the SC I would definitely have voted that the Voting Rights of 1965 violated the constitution.

Ranger
03-31-05, 04:47 PM
Therefore, please rethink your state sovereignity argument. ;)
I don't think I have to. -wink-