The EEOC sued General Motors and the United Auto Workers (UAW) union, alleging age discrimination in the company's workforce reduction and hiring practices.
The EEOC alleges that GM, in coordination with the UAW, targeted older employees for layoffs and preferentially hired younger workers during a recall-related hiring initiative. According to the complaint, this practice disproportionately affected workers age 40 and older, violating the Age Discrimination in Employment Act (ADEA).
The EEOC asserts the layoffs and subsequent hiring decisions were not based on legitimate business needs but rather on age-related stereotypes and biases.
The EEOC seeks to halt discriminatory practices, secure employment opportunities for older workers, and obtain back pay, damages, and other legal relief. The Commission emphasizes the importance of enforcing laws that protect older Americans from age bias and ensuring fair treatment in employment decisions.
Source: https://www.eeoc.gov/newsroom/eeoc-sues-general-motors-and-uaw-age-discrimination
Commentary
A layoff is the termination of an employee's position by an employer, in this case, a union employer, usually because of business-related reasons such as restructuring, financial difficulties, or downsizing, and it is not based on the employee's performance.
A layoff is considered a no-fault separation - meaning the employee is not responsible for losing their job but rather the company needs to reduce its workforce because of external or operational factors. Layoffs can be temporary or permanent, and sometimes union employees are subject to recall when business conditions improve. The recall process should be conducted fairly and equitably, offering reemployment opportunities without discrimination.
Best practices when recalling employees from layoffs involve treating all laid-off individuals fairly by establishing clear, nondiscriminatory criteria such as seniority, qualifications, or prior performance, and applying these criteria consistently.
Employers should document recall procedures clearly and ensure communication is transparent and timely to all eligible employees. This approach not only supports fairness but also reduces the risk of legal challenges related to discriminatory recall practices.
Recalling only younger employees and excluding older workers is illegal because it most likely violates union seniority agreements and age discrimination laws such as the Age Discrimination in Employment Act (ADEA), which prohibits workplace discrimination based on age (40 or older).
Selecting younger employees disproportionately denies older qualified workers the same opportunity and perpetuates stereotypes that older workers are less capable or valuable, which is unlawful under federal law. This kind of age-based exclusion in recall decisions is seen as discriminatory treatment and can lead to costly litigation and reputational damage for employers.
Managers and supervisors play a crucial role in preventing such discrimination and related litigation by adhering to fair employment practices during recall and layoff decisions. They should be trained to recognize signs of potential bias, maintain objective criteria for decisions, and communicate recall opportunities impartially.
Management should also document their decision-making processes thoroughly to demonstrate compliance with anti-discrimination laws.
The final takeaway is by fostering a transparent and equitable recall process, managers can help protect the organization from legal risks while promoting workforce fairness and morale.
