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Age Discrimination
Last term, for the second time, the Supreme Court denied certiorari on the question of whether outside job applicants can use the disparate impact theory to challenge age discrimination under section 4(a)(2) of the Age Discrimination in Employment Act of 1967 (ADEA), 29 U.S.C. § 623(a)(2) (2016). See Kleber v. CareFusion Corp., 140 S. Ct. 306 (2019). In cases raising this issue, en banc U.S. Courts of Appeals have vacated panel decisions recognizing such a claim. See Kleber v. CareFusion Corp., 888 F.3d 868 (7th Cir. 2018)(AARP Foundation attorneys represented Mr. Kleber), vacated and contrary result entered on reh’g en banc, 914 F.3d 480 (7th Cir. 2019), and Villarreal v. R.J. Reynolds Tobacco Co., 806 F.3d 1288 (11th Cir. 2015), vacated and contrary result entered on reh’g en banc, 839 F.3d 958 (11th Cir. 2016), cert. denied, 137 S. Ct. 2292 (2017). In light of the divergent opinions on this issue, we are likely one circuit court opinion away from the Court having to decide this incredibly important issue for older workers.
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Another emerging issue involving disparate impact claims in the age discrimination arena—a theory the Court recognized as valid in Smith v. City of Jackson, 544 U.S. 228 (2005), and further defined in Meacham v. Knolls Atomic Power Lab., Inc., 554 U.S. 84 (2008)—is whether sub-groups of individuals over age 40 (such as those 50 and over) may bring disparate impact claims under the ADEA. The Seventh Circuit recently concluded that such an approach is allowed in O’Brien v. Caterpillar, Inc., 900 F.3d 923, 930 (7th Cir. 2018), a case involving older workers eligible to retire who were laid off in a reduction-in-force and were denied unemployment benefits unless they agreed to retire. The company also paid such benefits to retirement-ineligible employees as part of an agreement with machinist and aerospace worker unions in return for the union’s agreement to eliminate a formal unemployment benefits plan. Id. at 925. The plaintiffs—retirement-eligible workers who were laid-off but who declined to retire and, thus, did not receive unemployment benefits—alleged that denying them such benefits had a disparate impact on older laid-off workers. Id. at 927. The parties disagreed on how to measure the impact: Caterpillar urged the Court to compare the impact on workers age 40 and over with that on workers under age 40, while Plaintiffs argued that the proper comparison was between retirement-eligible and retirement-ineligible workers. Retirement-eligible workers were significantly older, and yet, only they had to take an additional step—retiring—to receive unemployment benefits. Id. at 929.