South-Western - Management  
Avoiding Age Discrimination
Topic Equal Employment Opportunity; Training and Development
Key Words Age discrimination, EEOC, age-bias litigation, discrimination training
InfoTrac Reference A133178632
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News Story

Age-bias suits are on the rise and are leading to increasingly costly damage awards. Two factors appear to be contributing to the increase in cases in this area. One is the aging of the U.S. population, with more people staying healthy longer and choosing to stay at work well past the typical retirement age. Another factor is that HR departments are not making significant efforts to educate managers regarding age discrimination issues.

These cases are especially damaging because juries are awarding more money to victims of age discrimination than to victims of any other type of bias. A study by Jury Trends and Statistics found that plaintiffs filing age discrimination lawsuits received the largest jury awards. Between 1997 and 2003, older workers who sued received a median compensatory damages award of $255,143-22% higher than the next highest category, disability discrimination.

Effective training programs to help with the growing problem of age-bias in the workplace and the lawsuits that accompany it should cover:

  1. Stereotypical beliefs regarding older workers: one factor that fuels high settlements in court decisions is a manager's belief that older workers can't compete with younger ones. To combat stereotyping, companies should be sure to include age bias in their diversity initiatives and EEO training. They should also be careful to communicate the message that all workers are valued, regardless of age.
  2. Failure to address ageist jokes and comments: managers should be quick to stop workplace joking based on age. For example, one coworker might joke with another about being "ancient" and at the time, the joke is received in good humor. However, when the case comes to court, these kinds of offhand comments and joking can be used to support a claim of age discrimination.
  3. The lax view of age discrimination: many individuals see age discrimination as much less harmful than discrimination based on race, sex, or disability and can see nothing wrong with expressing a preference for younger workers. A case in which a 53-year-old manager at Nestle alleged that he was passed over for promotions in favor of younger workers was decided in his favor for $5.16 million. A memo from the company's chairman was introduced as evidence, which encouraged company leaders "to continue identifying and developing young people…for future management."
  4. Off-hour comments count: managers have to understand that they represent the company at all times, and that their comments, even during off-hours, can be construed as the "voice of the company." Managers need to also be aware that not only can discrimination lead to significant liability for the company; it can lead to their termination.
  5. Lack of understanding of the litigation process: Most managers have little understanding of what happens when a company is sued for discrimination. Most don't have a clear grasp of the thousands of dollars in legal fees that are involved in most cases and why a lot of cases end up in settlement to save the company time and money. The training should explain how risky bringing a case before a jury can be, even when the evidence seems to be in the company's favor.

Questions
1.

Name at least three factors that are contributing to an increase in age-bias discrimination cases today.

2.

Why does this article strongly recommend a training program for managers on the topic of age-discrimination?

3.

The aging of the U.S. population and the tendency to delay retirement seem to be trends that are here to stay. What policies do companies need to put in place to guard against age-bias discrimination?

Source "Avoiding Age Discrimination," The National Law Journal, June 6, 2005, pNA.
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