A California medical group has settled an age and disability discrimination charge filed with the US Equal Employment Opportunity Commission (EEOC) after it subjected a class of physicians to a mandatory retirement age, regardless of the individuals’ abilities to do the job, the federal agency announced on December 19, 2023. The EEOC investigated the allegations and found reasonable cause to believe that the medical group violated the Age Discrimination in Employment Act (ADEA) and the Americans with Disabilities Act (ADA).
Without admitting liability, the medical group has entered into a four-year conciliation agreement with the EEOC. According to the agreement, the medical group will provide $6,875,000 to a class of individuals impacted by its mandatory retirement age policy. Additionally, the medical group has rescinded its mandatory retirement policy based on age and its Board of Directors will reaffirm this recission. The medical group will inform employees of the recission and clarify that it does not have any policy in which age is a factor in making employment decisions, including termination, retirement, and terms and conditions of employment.
The medical group has further agreed to review, revise as necessary, and distribute its policies and procedures against discrimination based on age and disability. It will also require its division heads, department heads, executive leadership, and members of human resources to attend training on the ADEA and ADA. These provisions will include any acquired or merged medical group or other entity. The EEOC will monitor compliance with this agreement.
“Older workers make crucial contributions to our nation’s workplaces,” said EEOC Chair Charlotte A. Burrows. “With demographics showing that many people are remaining in the workforce longer, it is critical for employers to understand the ADEA’s protections for older workers. For that reason, the Commission has included discrimination against older workers among the priorities identified in its new Strategic Enforcement Plan.”
Compliance Perspective
Issue
Age discrimination involves treating an applicant or employee less favorably because of his or her age. The ADEA forbids age discrimination against people who are age 40 or older. It does not protect workers under the age of 40, although some states have laws that protect younger workers from age discrimination. It is not illegal for an employer or other covered entity to favor an older worker over a younger one, even if both workers are age 40 or older. Discrimination can occur when the victim and the person who inflicted the discrimination are both over 40. Disability discrimination occurs when an employer or other entity covered by Title I of the Americans with Disabilities Act (ADA) (which protects private and state and local employees) or the Rehabilitation Act (which protects federal employees) treats a qualified employee or applicant unfavorably because of disability. The disability laws forbid discrimination when it comes to any aspect of employment, including hiring, firing, pay, job assignments, promotions, layoff, training, fringe benefits, and any other term or condition of employment.
Discussion Points
- Review your policies and procedures on preventing discrimination, including age and disability discrimination. Update as needed.
- Train staff on what is considered discrimination and their role in promptly reporting all types of discrimination to a supervisor, the compliance and ethics officer, or through the facility’s hotline. Train supervisors and the compliance and ethics officer on their role when discrimination has been reported to them by an employee. Stress the importance of nonretaliation. Document that these trainings occurred and file the signed documents in each employee’s education file.
- Periodically audit by anonymously polling staff to determine if they are experiencing discrimination, or are aware of someone who is, and ask if they feel free to report such instances without fear of retaliation or retribution.
*This news alert has been prepared by Med-Net Concepts, LLC for informational purposes only and is not intended to provide legal advice.*
