Healthcare Provider to Pay $52,500 to Settle EEOC Age Discrimination Lawsuit

An Arkansas healthcare provider will pay $52,500 to four former employees as part of the settlement of an age discrimination lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC charges that the healthcare provider fired older workers with driving responsibilities because of their age.

The EEOC lawsuit, filed in February 2020, states that the healthcare provider fired four employees because the healthcare provider’s insurance policy excluded anyone over the age of 72 from driving. The healthcare provider made no attempt to secure alternative drivers’ insurance that would cover the employees, the EEOC said.

Under the two-year consent, the healthcare provider will pay the four employees $52,500 in back wages. In addition, under the terms of the consent decree:

  • The healthcare provider is enjoined from terminating or failing to hire any employees with driving responsibilities because of the individual’s age
  • The healthcare provider will not discriminate based on age in the purchase of insurance for employees who have driving responsibilities
  • Before renewing or purchasing any commercial automobile insurance policies, the healthcare provider will contact a minimum of three insurance companies to ascertain whether it can obtain policies which do not exclude from coverage any drivers of age 40 or older based on their age
  • The healthcare provider will review its existing equal employment opportunity policies to ensure the policies show a strong and clear commitment to preventing unlawful age discrimination and retaliation.
  • The healthcare provider will conduct training for its senior center employees on the requirement of the Age Discrimination in Employment Act (ADEA)
  • The healthcare provider will provide to EEOC any complaints of age discrimination and the healthcare provider’s responses to the complaints

The ADEA protects employees from discrimination based on age. The EEOC filed its lawsuit (Civil Action No. 3:20-cv-00049) in U.S. District Court for the Eastern District of Arkansas, Northern Division, after attempting to resolve the case through its conciliation process.

The regional attorney of the EEOC’s Memphis District Office, which has jurisdiction over Arkansas, stated, “ The primary purpose of Congress when passing the ADEA was ‘to promote employment of older persons based on their ability rather than their age.’ An employee’s value does not disappear simply because he or she has reached a certain age.”  The regional attorney commended the healthcare provider for its efforts in seeking a quick resolution without protracted litigation.

Edmond Sims, acting district director of the Memphis District Office added, “In Fiscal Year 2020, more than 24,000 charges, or 20% of the charges filed with EEOC, claimed age discrimination. This case serves as a reminder that employers may not set arbitrary age limits to displace older workers who are satisfactorily performing their jobs.”

The EEOC advances opportunity in the workplace by enforcing federal laws prohibiting employment discrimination. More information regarding the EEOC can be accessed at: https://www.eeoc.gov/.

Issue:

It is unlawful to discriminate against employees based upon their age. The Age Discrimination in Employment Act (ADEA) forbids age discrimination against people who are age 40 or older. Some states may have laws that protect younger workers from age discrimination, so it is important that you are aware of your state’s requirements. Every Company must have a ‘Zero Tolerance’ policy regarding discrimination. All employees, regardless of their position in the facility, must comply with the policy.  

Discussion Points:

  • Review your policy and procedures on age discrimination. Update your policy as needed.
  • Train all staff on your policy and procedures for age discrimination. Document that the training took place and file each signed document in employees individual education file.
  • Periodically audit staff to ensure that they are aware of your age discrimination policy and ask if they have ever felt as though they have been discriminated against because of their age. Additionally, audit to ensure staff are aware of how they can report age discrimination.