Client Alert - Employment Law Update
United States Supreme Court Issues Employer-Friendly ADEA Decision
The U.S. Supreme Court recently held that plaintiffs in disparate treatment cases under the Age Discrimination in Employment Act (ADEA) must prove that an employer acted solely because of their age. The decision clarifies that ADEA claims cannot be based merely on proof that age was a motivating or substantial factor, and is a victory for employers.
The case of Gross v. FBL Financial Services, Inc. No. 08-441 (June 18, 2009) began when Jack Gross, age 54, was reassigned jobs. He alleged age discrimination after many of his former responsibilities were transferred to a female employee in her early forties. At trial, Gross offered evidence that his employer's action was based at least in part on his age. Because of this so-called "mixed motive," the trial court applied the standard for similar cases under Title VII sexual discrimination cases. It instructed the jury that it must find in Gross' favor if it concluded that age was a motivating factor, or if it played a part or role in the employer's decision. The jury was further instructed that the employer bore the burden of proving that it would have demoted Gross regardless of his age.
After being heard by the U.S. Court of Appeals for the Eighth Circuit, the Supreme Court took the case, and ruled the Title VII standard was inapplicable to ADEA cases. Specifically, it held that plaintiffs must show that age was the "but-for" cause of an employer's decision, and that the burden of proof never shifts to an employer. It reasoned that “[u]nlike Title VII, the ADEA’s text does not provide that a plaintiff may establish discrimination by showing that age was simply a motivating factor.” The Court emphasized that when Congress amended Title VII to explicitly authorize discrimination claims in mixed motive scenarios, it made no similar amendment to the ADEA.
What the Decision Means to Employers
This decision eliminates mixed motive claims under the ADEA, and makes defending age discrimination cases substantially easier for employers. However, in recent years, Congress has shown a propensity for legislating around employer-friendly cases. The ADA Amendments Act of 2008 and the Lilly Ledbetter Fair Pay Act of 2009 were both passed in response to caselaw that was seen as preferential to employers.
If you would like more information about this decision, or have questions about your employment policies and practices in general, please contact Mr. Gonzalez at 312-558-9779 or at egonzalez@elvisgonzalezltd.com.
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