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Age Bias: Cases on the Rise; Ways to Limit Liability and Reap the Benefits of a Seasoned Workforce

The American workforce is getting older, and age-bias complaints are prevalent. In 2003, the Equal Employment Opportunity Commission received 19,124 age-discrimination claims and recovered $48.9 million in damages for age-bias victims. And big cases regularly hit the headlines. In July 2004, for example, Google, the California-based Internet search engine company, was sued for age bias by its 54-year-old former director of operations. The lawsuit claims he was fired because his age was incompatible with a company culture that emphasized “youth and energy.”

Boomers Getting Older

The “graying” of the workforce is part of why age-bias complaints are increasing. Baby Boomers are getting older—the first of these 75 million people will turn 65 in 2011—and the U.S. Census Bureau reports that the number of people age 55 and over will increase 73 percent by 2020. More older workers undoubtedly will mean more age bias complaints.

There are other reasons for the increase, as well. In a down economy, senior workers are often forced out because they tend to earn more. Additionally, older workers may not have new technology skills and the latest training, making them more vulnerable to layoffs in lean times.


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Age-Bias Suits Can Be Costly

It’s a big mistake to push older workers out the door before they’re ready. For one thing, they’re often the most experienced members of your staff, with valuable expertise and contacts. For another, age-bias lawsuits can be extremely costly and generate a lot of bad press. In 2003, for example, a California appeal court upheld a verdict of more than $5 million, plus $1.7 million in attorney’s fees, for an older manager for Nestle USA who claimed the company had a policy of promoting only employees under age 40.

4 Tips for Success

Here are four ways to avoid trouble and benefit more from your most experienced workers:

     

  1. Tap into your knowledge base. Seasoned workers can be a valuable asset. Take advantage of their know-how by staffing them on projects that make full use of their skills, and consider having them train or mentor new employees.

     

  2. Be flexible. A recent study by outplacement firm Challenger, Gray & Christmas, Inc., concluded that many workers age 55 and older are morning people. Consider offering older workers more flexible schedules, job sharing, and part-time job opportunities.

     

  3. Keep older workers in the training loop. Make sure that all training opportunities are offered to, and required of, all relevant workers, regardless of age.

     

  4. Have—and give—a reason. If you have a legitimate reason for terminating an older worker, document it carefully and make sure the employee knows why he or she is being let go.

 

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