Enterprise Settles $1.8M Age Discrimination Lawsuit
Enterprise Leasing Company has agreed to pay $1.8 million to settle charges that it systematically refused to hire job applicants aged 40 and older for management trainee positions. The settlement reveals troubling patterns of age discrimination that affected hundreds of qualified candidates across the rental car giant’s hiring practices.
The case exposes a stark disparity in Enterprise’s hiring decisions. While approximately 15% of applications for management trainee positions came from candidates aged 40 or above, these workers represented less than 3% of actual hires. The EEOC investigation uncovered over 125 witnesses who could testify to age-related discrimination during the interview process, including inappropriate questions about age or graduation year and discouraging comments about the company’s preference for recent college graduates.
This settlement serves as a critical reminder that age discrimination remains a significant issue in American workplaces, affecting millions of workers and costing companies substantial financial and reputational damage when left unchecked.
Details of the Lawsuit
“Employers cannot overlook qualified applicants simply because of their age,” stated Kristen Foslid
The EEOC’s investigation into Enterprise revealed a pattern of discriminatory hiring practices spanning from at least 2019 to the present. The evidence painted a clear picture of systematic bias against older job applicants seeking management trainee positions across Enterprise’s operations, which include National, Enterprise, and Alamo car rental services.
Statistical evidence formed the backbone of the case. The dramatic underrepresentation of workers aged 40 and older in actual hires compared to their application rates provided compelling proof of discriminatory practices. This 15% to 3% disparity represented hundreds of potentially qualified candidates who were passed over because of their age rather than their qualifications or experience.
The human element of the case proved equally damaging. Over 125 witnesses came forward with firsthand accounts of age discrimination during the hiring process. These witnesses reported being subjected to inappropriate questions about their age or graduation year during interviews—inquiries that, while not explicitly prohibited, often signal discriminatory intent. Many witnesses also testified that company hiring officials told them most successful candidates were recent college graduates, effectively discouraging older applicants from pursuing positions they were qualified to fill.
Legal Framework: The Age Discrimination in Employment Act
The Age Discrimination in Employment Act (ADEA) of 1967 provides crucial protections for American workers aged 40 and older. This federal law recognizes that age discrimination represents a significant barrier to employment opportunities and economic security for millions of workers.
Under the ADEA, employers cannot discriminate against individuals aged 40 or older in any aspect of employment. This comprehensive protection covers hiring decisions, firing, layoffs, compensation, promotions, benefits, job assignments, and training opportunities. The law applies to employers with 20 or more employees, including private companies, state and local governments, employment agencies, labor organizations, and the federal government.
The ADEA also prohibits specific practices that Enterprise allegedly engaged in during its hiring process. Job notices and advertisements cannot include age preferences, limitations, or specifications except in rare circumstances where age constitutes a bona fide occupational qualification. While employers can ask for an applicant’s age or date of birth, such inquiries are subject to intense scrutiny to ensure they serve lawful purposes rather than facilitating discrimination.
Retaliation protection represents another crucial component of the ADEA. Employees cannot face adverse consequences for opposing age discrimination, filing complaints, or participating in investigations or legal proceedings related to age discrimination claims.
Terms of the Settlement
Enterprise’s settlement extends far beyond monetary compensation, establishing a comprehensive three-year consent decree designed to prevent future age discrimination. The agreement requires Enterprise to implement sweeping changes to its hiring practices and organizational culture.
The company must develop and implement new ADEA policies that clearly prohibit age discrimination in all employment decisions. These policies must receive regular updates and distribution to all relevant employees involved in hiring decisions. Additionally, Enterprise must conduct yearly ADEA training programs to educate employees about age discrimination laws and proper hiring practices.
A crucial component of the settlement involves establishing robust reporting and tracking mechanisms. Enterprise agreed to implement an applicant tracking system that will provide the EEOC with accurate data on its hiring decisions. This system will enable ongoing monitoring of hiring patterns to ensure compliance with anti-discrimination laws and regulations.
The company must also maintain an Ethics Hotline, accessible through its website’s Code of Conduct, where applicants and employees can report complaints of discrimination. This reporting mechanism provides a direct channel for identifying and addressing potential discrimination issues before they escalate.
Extensive bi-annual reporting provisions require Enterprise to provide detailed information about its hiring practices to the EEOC. The company must also post notices about the lawsuit and conduct mandatory investigations of all age discrimination complaints received during the consent decree period.
EEOC’s Perspective on Age Discrimination
The EEOC’s statements regarding the Enterprise settlement reflect broader concerns about age discrimination in American workplaces. Regional Attorney Kristen Foslid emphasized that over one-third of the adult workforce is aged 50 or older, highlighting the substantial population of workers protected by age discrimination laws.
“Employers cannot overlook qualified applicants simply because of their age,” Foslid stated, underscoring the fundamental principle that hiring decisions must be based on qualifications and merit rather than age-related assumptions or biases.
Miami District Director Evangeline Hawthorne reinforced the value that older workers bring to organizations. “Workers in this protected age group bring a wealth of knowledge and experience to the workforce and can contribute to organizational success,” she noted. This perspective challenges common misconceptions about older workers and emphasizes their potential contributions to business success.
The EEOC’s commitment to enforcing age discrimination laws reflects recognition that this form of discrimination continues to affect significant numbers of American workers. The settlement demonstrates the agency’s willingness to pursue comprehensive remedies that address not only financial compensation but also systemic changes to prevent future discrimination.
Implications for Employers
The Enterprise settlement carries significant implications for employers across all industries. The case demonstrates that statistical disparities in hiring patterns can provide compelling evidence of discrimination, even without explicit discriminatory policies or statements.
Companies should conduct regular audits of their hiring practices to identify potential age discrimination issues before they result in legal action. These audits should examine application and hiring data across different age groups, review interview questions and procedures, and assess whether hiring criteria inadvertently disadvantage older applicants.
Training programs represent a critical prevention strategy. All employees involved in hiring decisions should receive comprehensive training on age discrimination laws, appropriate interview techniques, and recognizing unconscious bias. This training should be conducted regularly and include updates on relevant legal developments and best practices.
Organizations should also review their job advertisements, application processes, and hiring criteria to ensure they do not contain age-related preferences or requirements that could discourage older applicants. Language emphasizing “recent graduates” or “digital natives” may signal age discrimination intent, even if not explicitly stated.
Establishing clear policies prohibiting age discrimination and providing multiple reporting channels for complaints can help companies identify and address issues early. Regular monitoring of hiring patterns and complaint trends can reveal potential problems before they escalate into legal action.
Moving Forward: Creating Age-Inclusive Workplaces
The Enterprise settlement represents more than a legal resolution—it provides a roadmap for creating truly age-inclusive workplaces that value experience and diversity. Companies that proactively address age discrimination can tap into the substantial talents and experience that older workers bring to organizations.
Research consistently demonstrates that age-diverse workplaces benefit from improved problem-solving capabilities, institutional knowledge retention, and enhanced customer service. Older workers often possess valuable skills, strong work ethics, and in-depth industry knowledge that can significantly contribute to an organization’s success.
For employers, the message is clear: age discrimination represents both a legal risk and a missed business opportunity. Companies that embrace age diversity and implement robust anti-discrimination measures will be better positioned to attract top talent across all age groups while avoiding costly legal settlements.
If you believe you have experienced age discrimination in hiring, promotion, or other employment decisions, understanding your rights under the ADEA is crucial. Contact our firm to discuss your situation and explore your legal options. Our experienced employment attorneys can help you navigate the complexities of age discrimination law and pursue the justice you deserve.