Entrepreneur reports that J&M Industries Inc., a Louisiana-based manufacturing and distribution company, has agreed to settle an age discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC). The case involves allegations that the company terminated an employee shortly before her 65th birthday due to age-related biases.
According to the federal age discrimination lawsuit, the employee, who served as a purchasing agent
for nearly two decades, faced persistent inquiries regarding her retirement plans in the months leading up to her 65th birthday. The EEOC complaint states that she was repeatedly approached by J&M Industries managers, including her direct supervisor, with questions such as “When are you going to retire?”, “Why don’t you retire at 65?”, and “What is the reason you are not retiring?”The employee was subsequently terminated after affirming her decision not to retire at 65. The EEOC contends that J&M Industries replaced her with a younger male employee less than a month after her dismissal.
The company initially cited “economic uncertainty” as the reason for eliminating her position in May 2020. However, the complaint highlights the swift replacement of the terminated employee with a 39-year-old male, raising suspicions of age discrimination.
In response to the EEOC’s complaint, J&M Industries denied terminating the employee based on age. The company argued that the replacement hiring was justified, saying the new employee had “broader, more significant duties” than his predecessor.
The settlement, announced by the EEOC on Feb. 1, involves J&M Industries agreeing to pay the former employee $105,000 in back
pay and liquidated damages. The resolution addresses the company’s violation of the Age Discrimination in Employment Act, a law safeguarding individuals aged 40 and older from age-related discrimination in the workplace.Rudy Sustaita, a regional attorney for the EEOC’s Houston District Office, emphasized the significance of the settlement, stating, “This resolution serves the public interest. It provides relief for the former employee and will help protect others from age discrimination.”
As part of the three-year consent decree settling the case, J&M Industries commits to training employees, revising company policies, regularly reporting to the EEOC, and prominently posting notices emphasizing 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, saying, “Age discrimination is wrong, and employers that discriminate against older workers violate the law.”
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