"Reverse Age Discrimination Claim" is Rejected by the Supreme Court

February 26, 2004

By Jeffrey A. Schwartz

Earlier this week, the U. S. Supreme Court ruled that the Age Discrimination in Employment Act (ADEA) is not violated by an employer that gives less preferable treatment to one group versus "similarly situated" employees in an older age bracket. See General Dynamics Land Systems, Inc. v. Cline. The lawsuit was filed by a group of employees between the ages of forty and forty-nine who alleged that they were discriminated against in violation of the ADEA because the employer excluded them from future retiree health benefits that were contained in a collective bargaining agreement. The contract provided that retiree health benefits were available only to existing employees who were fifty years or older as of the date of the contract. The Supreme Court reversed a lower court decision and held that Congress did not intend for the ADEA to protect younger employees from employment decisions made in favor of relatively older employees. The Court explained that its prior cases addressing the ADEA revealed a plain understanding that the ADEA is a law designed to prevent employment decisions favoring younger workers and that complaints of the so-called "relatively young [are] outside the statutory concern."

The Court's holding puts to rest a conflict that existed among the circuit courts of appeal and confirms that based on the text, structure, purpose, and history of the ADEA, along with its relationship to other federal statutes, the ADEA does not prohibit an employer from favoring an older worker over a younger one.

The author and Watkins Ludlam Winter & Stennis' labor and employment attorneys are prepared to assist you with the impact of this decision for policies, practices, discipline, terminations and layoffs where potential bias-related issues are a consideration.

Jeffrey A. Schwartz is a shareholder in the Firm's Labor and Employment Practice Group and resides in the Firm's New Orleans office. He may be contacted at (504) 522-8788 or you may e-mail him at jschwartz@watkinsludlam.com.