New Wave of Age Discrimination Lawsuits Coming?
| Age Discrimination lawsuits have been out of fashion in California
in recent years. Courts in at least two cases -- one federal one
state -- had decided that firing older workers isn't discriminatory if
you do it because they cost more than younger (less experienced) employees.
But in 1998, the California Legislature cleared the road for a new parade of age bias cases, by adding a new Government Code section, 12941.1, specifically stating that laying off workers on the basis of salary may constitute age discrimination if the effect is to terminate older workers. That means that even if the employer was just trying to save money by replacing more expensive workers with cheaper ones, that employer may be liable for age discrimination if the laid-off workers happen to be older. Employers may be able to get around this problem by offering to keep an existing worker, if he or she will take a pay cut to match the cost of a less experienced worker. Of course, the strategy is untested until a court rules on a test case. And, if you have a contract with an employee -- written, oral, or implied -- it may be a violation of that contract to lay off the employee or cut his or her pay without good cause. While economic reasons can be good cause, that isn't always the case. When in doubt, check with your attorney before you act. |