EEOC Filings Rise

 Filing charges of EEOC complaints has reached an all-time high.  Though just a small increase over 2010, the filings reflect the state of the economy.  Filings generally rise when the economy worsens.  That is due, I believe, to employers taking advantage of the economic "cover" to get rid of employees and more terminations simply cause more complaints.  See MSNBC report.  

The EEOC said it received 99,947 complaints in Fiscal Year 2011.  35% of these complaints were based on race; 29% alleged gender discrimination; and 24% of the complaints were based on age discrimination.  26% of those complaints were based on disability discrimination.  The EEOC says 18% of those complaints received a "merit resolution," which means they achieved some sort of settlement. 

Fifth Circuit Recognizes Hostile Work Environment Claims Under the ADEA

The Fifth Circuit has recognized that a hostile work environment claim can exist under the Age Discrimination in Employment Act.  The Fifth Circuit has never reached such a conclusion before now.  In Dediol v. Best Chevrolet, Inc., the Federal appellate court reversed a grant of summary judgment in favor of the employer.  

The Court found that such a claim would include the following elements: 1) the employee is over the age of 40, 2) the employee was subject to harassment based on age - either through actions or words, 3) the harassment is severe enough that it  creates an objectively intimidating, hostile, or offensive work environment, and 4) the employer is liable in some way.  See decision.  Mr. Dediol was 65 years old while he worked for Best Chevrolet.  Typically, the employer would be liable if it became aware of the harassment and failed to take action or if a supervisor conducted the harassment against the worker. 

In this case, Mr. Dediol showed that his supervisor called him names such as "Old mother f*****," "old man," and "pops" several times everyday for eight weeks.  The manager also made negative comments about the employee's faith.  Mr. Dediol was a born-again Christian.  The plaintiff eventually quit coming to work. 

Evidence showed that that the supervisor charged at the plaintiff at a staff meeting, threatened to "kick his a**."  He removed his shirt saying, "You don't know who you're talking to.  See these scars.  I was shot and in jail"  

Mr. Dediol quit coming to work and was then terminated.  The Fifth Circuit found that this was sufficient evidence to support a claim for constructive discharge.  That is unusual.  The Fifth Circuit rarely sees a situation it considers sufficiently severe to justify an employee resignation. 

Older Worker Benefit Protection Act Meets a Need

The Older Workers' Benefit Protection Act (OWBPA) was passed in 1990 as an amendment to the Age Discrimination in Employment Act.  The OWBPA provides that for an older worker to sign a binding waiver of claims, the employer must include a provision that the worker has 21 days in which to sign the waiver and 7 days after signing in which the worker can reconsider his signature. The waiver must be legible and specifically refer to waiving any ADEA rights.  See EEOC Fact Paper.  The employer must tell the potential age claimant that he has a right to speak with a lawyer before signing the waiver. 

What if the worker accepts severance pay at the time he signs the release?  Must the worker return the severance pay in order to rescind his signature?  Not under the terms of Oubre v. Entergy Operations, 522 US 422 (1998).  If the release does not comply with the OWBPA, then the worker need not return or "tender back" the severance pay in order to still file suit for age discrimination.  See EEOC Guidance, Note 13.  

Passage of the OWBPA was based in part on the recognition that when an older worker is terminated, they may be leaving employment with no resources on which to live.  That is why Oubre provides they need not return a severance payment related to the waiver.  Most workers who are terminated leave with little resources.  But, Oubre only applies to age claims.  If you sign a waiver releasing several claims, such as age claims, ethnic origin claims and race claims, then you could possibly rescind only the signature related to the age claim.  Your signature remains valid in regard to the race and ethnic origin claims, whether you return the severance pay or not.  

Some plaintiffs have tried to argue that when they signed a waiver releasing multiple claims, then the waiver as a whole is not valid because it failed to meet the OWBPA requirements.  Wrong,  The failure to meet the requirements of the OWBPA only applies to any potential age claim.  Your race claim would remain barred or waived.  The waiver is effective in regard to other non-age related claims.  Same waiver, same provisions.  But, age claimants get a break, while others do not.  

The reality is that most people who are fired are extremely upset at the time.  Even if they do not shed tears, they are are still too disturbed to think clearly.  They do sometimes sign things they should not and accept payments they should not accept.  Age claimants can undo such agreements. The others cannot. 

Shifting Reasons Still Help Show Pretext

Many times, an employee comes to see me and asks me how strong his/her case is.  Often, i do not know.  It is hard to gauge the strength of a case until we know the reasons used by an employer for a questionable adverse personnel action.  Indeed, sometimes those reasons change over time.  

In a reent case, the 8th Circuit Court of Appeals has confirmed that yes, shifting reasons over time do help show pretext.  See report.  In Jones v. National American University, the plaintiff employee was turned down for a promotion to the Director of Admissions.  The plaintiff was in her mid-50's.  The plaintiff had spoken with one of the decision-makers about another applicant who was in his mid-50's also.  This particular decision-maker had mentioned that he was not sure he would want a "grandpa" working with high school students.  The school later picked a 34 year old woman for the position.  

The plaintiff quit when she was not picked for the position.  When she quit, the same decision-maker told her that the person picked was simply the better choice long-term.  

The plaintiff filed with the EEOC.  She claimed she was not hired due to her age.  The employer responded to the EEOC that Ms. Jones was not picked because of her poor work performance.  But, at trial, the employer claimed no, it was actually because she lacked management experience. Indeed, at trial, the testimony about the plaintiff's work performance was all positive.  And, none of the job postings listed management experience as a requirement.  Ms. Jones also introduced evidence showing that she was more qualified for the position than the younger person who was picked.  So, the employer's case essentially fell apart at trial. 

The reasons for the selection changed at trial significantly.  Shifting reasons suggests pretext. 

We have known since the decision in Reeves v. Plumbing Products, Inc., 530 US 133 (2000), that the US Supreme Court accepts changing reasons as proof of discriminatory bias.  That decision found that a jury can infer discriminatory bias if the employer's proffered reason for a discharge is shown to be false.  The jury is not required to draw such a conclusion, but it may draw such a conclusion.  So, the decision in Jones should not be surprising.  But, too many courts still do not follow the Reeves reasoning and give enough weight to shifting reasons.  

It helps that the employer made the statement showing age bias.  But, proof of falsity should be enough.  People do not discriminate and then admit it.  They almost always deny any discriminatory bias. 

Former Lawyer Still Looking for Work

It is always harder to find a job when you reach a certain age.  A female lawyer, almost 60,  has submitted 1,000 applications and has yet to find a job.  According to the ABA Journal report, she has applied for everything from day care worker to clerk.  The former shopping center lawyer was laid off in January, 2009.  She has not even had one interview.  She compares finding a job interview to looking for a unicorn.....

Many of my clients who lost their jobs in their 50's typically take a year or more to find a new job.