Metallic Products Settles Suit about Mandatory Retirement Policy

November 23, 2011 (PLANSPONSOR.com) - A Houston manufacturer will pay $60,000 and provide other relief to settle an age discrimination lawsuit brought by the Equal Employment Opportunity Commission (EEOC).

According to the EEOC’s suit, Metallic Products Corp. had an unlawful mandatory retirement policy which required employees to retire upon reaching age 70. Before he turned 70, company officials advised Jeronimo Vidals that he would be required to retire upon reaching 70 years of age. Then, on his 70th birthday, he was fired from the company pursuant to its unlawful mandatory retirement policy.  

“With rare exception, mandatory retirement policies violate the Age Discrimination in Employment Act (ADEA), which prohibits forcing an employee to retire at any particular age,” said R.J. Ruff, Jr., district director of the EEOC’s Houston District Office.  

In addition to the monetary payment to Vidals, a four-year consent decree settling the suit requires Metallic Products to rescind the unlawful policy and notify all current employees and former employees who may have been affected by the policy about this settlement. The company must rewrite all company policies and employee manuals and eliminate any mention, reference or description of the former mandatory retirement policy.    

Additionally, the company must provide annual ADEA and anti-discrimination training to its board of directors as well as all management and other personnel making employment decisions. 

Rebecca Moore
editors@plansponsor.com