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High court win for older workers

The U.S. Supreme Court has given workers age 40 and older more power to sue
for age discrimination, ruling that they may challenge an employment policy that appears neutral but disproportionately hurts them.

     The lower federal courts had been split on whether the federal Age Discrimination in Employment Act (ADEA) allows so-called “disparate impact” claims, in which workers argue that the effect of an employer’s policy—rather than the intent behind it— is discriminatory.

     Although the court ruled that disparate impact claims are allowed under the ADEA, it also found that the older workers in the specific case did not have a valid claim. In the case, a group of police officers and dispatchers in Jackson, Miss., sued over a pay performance plan that gave less senior, younger workers larger wage increases than more senior, older workers. The city argued that the pay policy was implemented to bring salaries for junior officers in line with surrounding communities and help the police department remain competitive in attracting and retaining officers. The court accepted the explanation, saying the ADEA lets an employer use “reasonable” age-neutral factors, such as cost-cutting, training, or performance, to justify a practice that penalizes older workers.

     More than 70 million workers are covered by the new ruling. Legal experts estimate that workers making age discrimination claims generally win about one-third of the time.

     Click here to read the opinion.