The Chicago Employment Law Blog

Age Discrimination or Money Saving Tactic?

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Sometimes it’s not so easy to tell when an employer is discriminating against someone for age, even when mostly older workers suffer. This is especially true in this down economy when employers look to save money and slash payroll costs.

That’s because older workers tend to earn more, so when budgets are slashed, they’re often the first to be let go. The Chicago Board of Education is now dealing with a similar situation as two teachers on the verge of completing their 20th year in the school system have sued bringing an age discrimination lawsuit. In their defense, the Board of Education may can claim the terminations were for legitimate reasons like cost-savings or performance.

In the federal class action claim, Barbara Ferkel and Adrienne Green-Katien both worked for the Chicago public schools for 19 years and consistently received excellent and satisfactory reviews until they were suddenly deemed unsatisfactory and released, reports Courthouse News Service.

The plaintiffs say that it was no coincidence their reviews fell prior to completing 20 years. According to their employment contracts, the teachers stood to gain quite a bit in pension and other benefits at their twentieth year, reports Courthouse News. So the terminations made economical sense for the school district, but the teachers claim it didn't make legal sense.

Looking at it from an age discrimination perspective (ignoring any contract issues), employers are generally free to make personnel decisions like who to fire or hire so long as the decision is not based on age. The Chicago Board of Education can consider salary and costs-savings when deciding who to fire, but when their decision mostly impact older workers they can get into trouble if it can be shown that their true motivation is to make their workforce younger.

In this age discrimination lawsuit, a court will likely have to consider if the termination of Barbara Ferkel and Adrienne Green-Katien was due to monetary considerations, poor work, or for an illegal reason like age discrimination. The court will have the difficult task of guessing the employer's motives based on the evidence presented.

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