February 7th 2024.
A recent report by Entrepreneur magazine reveals that J&M Industries Inc., a manufacturing and distribution company based in Louisiana, has reached a settlement in an age discrimination lawsuit brought against them by the U.S. Equal Employment Opportunity Commission (EEOC). The lawsuit alleges that the company fired an employee just before her 65th birthday due to age-related biases.
The employee, who had been with the company for nearly 20 years as a purchasing agent, was reportedly subjected to constant questions about her retirement plans in the months leading up to her 65th birthday. Her direct supervisor and other managers at J&M Industries allegedly asked her when she would retire, why she hadn't retired at 65, and the reasons for her decision not to retire.
After confirming that she had no plans to retire at 65, the employee was let go. The EEOC claims that the company then hired a younger male employee less than a month later to fill her position. While J&M Industries initially stated that the termination was due to "economic uncertainty," the EEOC's complaint points to the quick replacement of the terminated employee with a 39-year-old male as evidence of age discrimination.
J&M Industries denied the allegations and argued that the hiring of the younger employee was justified because he had more significant duties than the previous employee. However, the company has agreed to pay the former employee $105,000 in back pay and liquidated damages in the settlement announced on Feb. 1. This settlement addresses the violation of the Age Discrimination in Employment Act, a law that protects individuals aged 40 and older from discrimination based on their age in the workplace.
Rudy Sustaita, a regional attorney for the EEOC's Houston District Office, stressed the importance of this settlement, stating that "it provides relief for the former employee and will help protect others from age discrimination." As part of the three-year consent decree, J&M Industries has also committed to training its employees, revising company policies, regularly reporting to the EEOC, and prominently posting notices about compliance with the Age Discrimination in Employment Act.
Peter Theis, a senior trial attorney for the EEOC's New Orleans field office, emphasized the broader implications of this case, stating that "age discrimination is wrong, and employers that discriminate against older workers violate the law." This settlement serves as a reminder that age discrimination is not acceptable and that companies must comply with laws protecting older workers in the workplace.
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