Incentive Plan Shows Age Bias

A federal judge has entered a consent decree requiring a state agency to pay nearly $470,000 to resolve an age discrimination case filed by the Equal Employment Opportunity Commission (EEOC).

In its lawsuit against the Minnesota Department of Health and Human Services (DHS), the EEOC contended that the incentive plans contained in collective bargaining agreements violated the Age Discrimination in Employment Act (ADEA) because the plans denied employer contributions for health and dental premiums for employees who retired after age 55.

Under the decree, DHS will pay out back contributions to 29 claimants. DHS also must pay future premium costs for persons who would still be entitled to receive them but for the unlawful early retirement provision.

The EEOC says it will continue to be on the lookout for similar incentive plans, which essentially end up punishing people who want to work after a certain age.