Laid Off at 65. Is this Age Discrimination?

Question

My father was just laid off from his job of 35 years, because the company he worked for decided to close this particular location. There is another branch, about an hour away, and everyone else that was laid off was offered a job at this other location, except my father who is 65 and one other person who is 63. Would this constitute age discrimination?

A little background: Previous to this happening, 3 months ago, the boss had come to my dad and complained about the high cost the company was paying for health insurance because my dad had some health issues.

They want him to sign a disclosure that specifically states he will not sue for age discrimination. Also after 35 years of service they offered him a 6 week severance package, is this unfair?

Please advise on if he has any recourse.

Answer 1

Its not fair.  And your dad shouldnt have signed anything without a lawyer or without reading it over.  If your dad hasnt reached full retirement age, then they are discriminating.  

Answer 2

The severance amount is not dictated by law, and unfortunately a lot of companies these days are not offering any severance, they are just closing the doors.

With a signed release the company is required to offer compensation in exchange for his signing away his right to sue for various issues. (Non-reported workers comp. injuries, age, and other issues dictated by the state you live in) He needs to read the agreement through very carefully before he signs it and make sure that he understands what he is waiving in the agreement before he signs it. Did the company state why they did not offer him a job at the other location? Is someone at the other location already doing the job your dad was doing? A company is not required to move someone, create a position or fire someone to make room for employees at a new plant. If your dad was a manager or upper level and they did not need him at the other location because someone else is already performing that job then it may be legal for them not to offer him a job. There are many questions to be answered, too long for this forum.

If he is unsure about signing the document then he should seek some legal advise to understand what the agreement is asking from him and what rights he may be giving up by signing it. The comments about the health insurance are something to be concerned about, but without knowing all the facts here it is hard to give you good advice.

Answer 3

Time to lawyer up. Don't sign anything and get the other guy to do a class action suit.

Women are also more expensive to insure than guys are but employers can't discriminate against them.

  

Answer 4

Yes, this is age discrimination on all counts except for the severance package. For that, he needs to consult with a labour/employment lawyer about the details and if it's an adequate amount of severance.

There's no question this is age discrimination and for multiple reasons. I could list them all but, trust me, it is and it's BLATANT!!

-- Liam

Answer 5

What you describe sounds like two people in a protected class were treated differently, which would be age discrimination.  The previous comments about medical cost for older workers are relevant, and can be part of your complaint, which can be pursued just for your father only or for other employees over 40 who were discriminated against.  

However, making a complaint to the company or the EEOC is just one option.  Taking the severance pay and signing a release is another.  Note that a properly worded release would make it impossible to pursue the age discrimination complaint, so you have to think carefully before signing the release.

Six weeks of severance pay for 35 years of work is not a generous offer, so I would suggest negotiating for more, perhaps 35 weeks pay (start much higher).  A complaint to the company about age discrimination or even to the EEOC could be part of this approach and a lawyer could write a letter to the company (not too expensive) or help you negotiate (more expensive).  Remember, that once the release is signed and the 7-day waiting period is over, the severance pay is all you will get.  

You could also negotiate for additional benefits, such as cash payoff of accrued vacation or sick leave, a longer notice period before termination, Cobra benefits paid by the company for 18 months, etc.  However, at age 65, with severance pay, social security and medicare in place, this may be the best time for your father to retire, as long as you handle the severance negotiation well.

Answer 6

Tell him NOT to sign anything ! He should have been offered the job like everyone else. He's probably a better worker than the 25 year olds ! 6 weeks ? How about a year ? He's being ripped off.