As those of us in this field know, the law is constantly changing. Laws that were passed decades ago are still in effect, but have likely been updated and amended based on court rulings and current events. On April 30, 2012, clarifications to the 45-year-old Age Discrimination Employment Act (ADEA) go into effect.
The ADEA, designed to protect those workers over the age of 40 from discrimination, is fairly straightforward when discussing individual cases of discrimination. An employer cannot terminate an employee simply because of age. But sometimes groups of older employees can be affected inadvertently by business decisions. This type of age discrimination is referred to as “disparate impact.” An employer unknowingly makes a decision that negatively affects older workers more than younger ones.
In order to prove that the employer did not discriminate against older employees, it must be shown that reasonable factors other than age (RFOA) were the reason behind the employer’s actions. The EEOC states, “An employment practice is based on an RFOA when it was reasonably designed and administered to achieve a legitimate business purpose in light of the circumstances, including its potential harm to older workers.”
So what does this mean to Ohio employers? Do you have to do a high-tech computerized analysis every time you make a staffing decision? Do you have to record your every move and prove it was not motivated by your desire to get rid of older workers? Do you have to subject your managers and supervisors to a strict training regimen on how to evaluate employees? Do your decisions have to be based on some objective scientific equation with no subjective thought?
Obviously the answer to all of the above questions is no. In this new ruling, the EEOC provides five considerations that employers need to keep in mind when making decisions. You are not required to follow or document all of the considerations to avoid a guilty verdict in an age discrimination case. Nor would you automatically be found not guilty of discrimination because you did follow all of the considerations. Here is a summary of these guidelines given by the EEOC to help you in making fair and reasonable employment decisions:
- A factor is reasonable if it pertains directly to the purpose of the business. The example given by the EEOC is that of a police department testing the fitness levels of applicants. While it is possible that older applicants would not test as well as younger ones overall, the fact of the matter is that police officers need to be able to catch bad guys. So the purpose of the business supports the fitness test.
- The employer should make sure that the factor is fairly applied to all employees, and any managers or supervisors should be given guidance on how to fairly apply the factor.
- If an employment decision could be seen as discriminatory against older workers, employers should do their best to ensure that managers and supervisors use objective factors rather than subjective ones. For instance, if staff is going to be reduced based on productivity, have a set of objective statistics showing how each employee being considered for termination has been underproductive.
- Give specific consideration to whether or not an employment decision would adversely affect older workers as a group.
- Determine how much the decision would affect older workers and how many people would be affected compared to the “cost and difficulty” of making a different decision that would lessen the negative impact on older workers.
Hopefully these considerations will help you as an employer make decisions that move your business forward without negatively impacting your employees over 40. As with all employment decisions, it is best to consult with an employment law attorney if you are faced with this situation to ensure you are making informed decisions that are within the law. The Ohio employment law firm of Andrews & Wyatt is experienced in helping employers stay within the law while doing what is best for their businesses.
