The $103 Million Verdict: Age Discrimination in the Workplace

Laws protect against age, gender, race discrimination. Helmer Friedman LLP represents discrimination victims.

The $103 Million Wake-Up Call: Age Discrimination in the Workplace

For thirty-one years, Joy Slagel was a loyal employee. She built a career, managed cases, and even won awards for her customer service. But in the corporate world, three decades of experience doesn’t always guarantee respect—sometimes, it paints a target on your back. After a leadership change in 2012, the atmosphere at her workplace shifted. Older colleagues began disappearing, forced into resignation or fired outright. Slagel found herself isolated, criticized for “setting the bar too high,” and eventually terminated without explanation after returning from medical leave.

Her story isn’t an anomaly, but the outcome was historic. A Los Angeles jury recently ordered her former employer, Liberty Mutual Insurance Co., to pay $103 million in damages. The verdict sends a thunderous message to boardrooms across America: discriminating against older workers is not just unethical; it is a massive financial liability.

Age discrimination remains a pervasive, often silent issue in the modern workforce. While we frequently discuss diversity in terms of race and gender, age bias often flies under the radar until it causes irreparable harm to careers and health. Whether it manifests as a subtle comment about “fresh energy” or a blatant firing of senior staff, ageism is illegal, harmful, and costly.

Federal Age Discrimination Laws

Understanding the Age Discrimination in Employment Act (ADEA)

At the federal level, the primary shield against this bias is the Age Discrimination in Employment Act of 1967 (ADEA). This law explicitly protects individuals who are 40 years of age or older from employment discrimination based on age. It applies to both employees and job applicants.

Under the ADEA, it is unlawful to discriminate against a person because of their age with respect to any term, condition, or privilege of employment. This is a broad umbrella that covers nearly every aspect of the working relationship, including:

  • Hiring: Employers cannot refuse to hire a candidate simply because they are over 40.
  • Firing and Layoffs: Targeting older workers for redundancy during restructuring is prohibited.
  • Compensation and Benefits: Older workers cannot be paid less or denied benefits offered to younger counterparts.
  • Promotions and Training: denying career advancement or upskilling opportunities based on age is illegal.

The law applies to employers with 20 or more employees, including employment agencies, labor organizations, and federal, state, and local governments. Additionally, the Older Workers Benefit Protection Act (OWBPA) amended the ADEA to prohibit employers from denying benefits to older employees, recognizing that the cost of providing benefits should not be used to discourage hiring experienced talent.

California Age Discrimination Laws

Fair Employment and Housing Act (FEHA)

The Fair Employment and Housing Act (FEHA) is a California law that offers strong protections against age discrimination for individuals aged 40 and older. Under FEHA, age discrimination occurs when an employer treats a job applicant or employee less favorably because of age. This can include actions such as denying promotions, terminating employment, or refusing to hire someone solely based on their age. FEHA applies to employers with five or more employees and requires that all workplace decisions be based on merit and qualifications rather than age. Additionally, FEHA prohibits practices like including age preferences in job advertisements or enforcing seemingly neutral policies that disproportionately affect older workers without legitimate, non-discriminatory reasons. This law serves as a crucial safeguard, ensuring that older employees are treated fairly and have equal opportunities in the workplace.

While the Fair Employment and Housing Act (FEHA) and the Age Discrimination in Employment Act (ADEA) offer similar federal safeguards, they aim to prevent age discrimination but differ in scope and application. FEHA applies to employers with five or more employees and includes broader protections against various types of discrimination beyond age discrimination. In contrast, the ADEA specifically addresses age discrimination and applies to employers with 20 or more employees, making its coverage threshold stricter.

Another key distinction between the two laws is the age group protected. Under the ADEA, the law specifically protects individuals aged 40 and older from discrimination. FEHA, however, doesn’t explicitly set a minimum age but prohibits age-based discrimination more generally, which may allow for a broader interpretation within California. Additionally, claims under the ADEA are typically filed with the Equal Employment Opportunity Commission (EEOC), while FEHA claims are processed through the California Civil Rights Department (CRD). This emphasizes the overlap yet distinct processes these laws provide. Together, FEHA and ADEA establish a comprehensive framework to protect workers from age discrimination, especially in jurisdictions like California, where state and federal regulations intersect.

How Age Discrimination Manifests in Real Life

Bias rarely announces itself with a megaphone. Instead, it often creeps into the workplace through coded language and subtle exclusions. While the law is clear, the application of discrimination can be murky.

In hiring, it might look like job postings that seek “digital natives” or caps on years of experience, effectively filtering out older applicants before they even apply. In the office, it can be social exclusion—being left out of meetings, overlooked for challenging assignments, or subjected to “jokes” about retirement or adaptability to technology.

The most damaging forms often occur during restructuring. Companies looking to cut costs often target higher-salaried employees, who tend to be older workers with long tenure. If a layoff disproportionately affects those over 40, it may violate the ADEA.

Similarly, promotions may be withheld under the guise that an older employee “lacks long-term potential” or “isn’t a cultural fit,” phrases that often serve as smokescreens for bias.

Anatomy of a Verdict: The Liberty Mutual Case

To understand the severity of age discrimination, one need look no further than the recent case against Liberty Mutual. The details, as presented in court, paint a disturbing picture of a systematic effort to push out older workers.

According to court filings, the environment at Liberty Mutual shifted dramatically around 2012 following the promotion of a new regional claims manager, Ariam Alemseghed. The complaint alleged that a pattern emerged where employees in their 50s and 60s were forced to resign. Eventually, of the approximately 120 employees in the department, only two were over 40. Joy Slagel was one of them.

The harassment Slagel endured was calculated. Despite a spotless 30-year record, she was suddenly criticized for being a bad team player. The complaint detailed how she was ignored during morning greetings and singled out during meetings. When she won a customer service award and a $1,000 gift for her exemplary work, the regional manager allegedly undercut the achievement by telling her she “got lucky” and that it “would never happen again.”

The stress of this hostile environment took a physical toll. Slagel’s blood pressure worsened, forcing her to take a short-term disability leave. While she was away, the company sent a courier to retrieve her laptop—an unusual move that foreshadowed her fate. Upon her return, her access badge had been deactivated. She was called into a conference room and fired, effective immediately. She was replaced by a white male in his late 20s.

The jury’s verdict—$20 million in compensatory damages and $83 million in punitive damages—was a direct rejection of these tactics. Justin Shegerian, the lead trial attorney, stated that the verdict is a “resounding message” that juries will hold employers accountable for such harm.

Strategies for Employees Facing Discrimination

If you suspect you are being targeted because of your age, it can feel isolating. However, there are steps you can take to protect yourself and build a potential case.

Document Everything

Paper trails are essential. Keep a detailed record of discriminatory comments, exclusion from meetings, or sudden negative shifts in performance reviews that contradict your actual output. In the Liberty Mutual case, the timeline of events—from the leadership change to the specific comments made during the award ceremony—helped establish a pattern of behavior.

Know Your Rights Regarding Waivers

Employers sometimes ask departing employees to sign waivers releasing the company from ADEA claims, often in exchange for a severance package. Under the OWBPA, these waivers must meet strict standards to be valid. You must be given at least 21 days to consider the agreement and seven days to revoke it after signing. Most importantly, you should be advised in writing to consult an attorney. Do not sign away your rights without legal counsel.

Oppose the Behavior

Retaliation for opposing discriminatory practices is illegal. If you report age discrimination to HR or file a charge, and your employer punishes you for it, that retaliation is a separate legal violation.

For employers, the $103 million verdict against Liberty Mutual should serve as a stark warning. The costs of age bias extend far beyond legal fees; they damage reputation, morale, and institutional knowledge.

“This verdict is a resounding message to corporations nationwide: age discrimination is illegal, it is harmful and juries will hold employers accountable,” Justin Shegerian, lead trial attorney and founder of Shegerian & Associates, said in a statement.

Preventing discrimination starts with culture. Employers must ensure that performance reviews are based on objective metrics, not subjective feelings that can mask bias. Leadership training is crucial—managers need to understand that comments about “fresh blood” or “digital natives” can be evidence of discriminatory intent.

Furthermore, audits of hiring and firing practices can reveal statistical anomalies before they become lawsuits. If a reduction in force impacts 80% of your workforce over 50, you have a problem. Building an inclusive workplace means valuing experience as an asset, not a liability.

Upholding Dignity in the Workforce

Joy Slagel gave 31 years to a company that ultimately treated her as disposable. The jury’s decision to award her over $100 million restores a measure of justice, but it cannot undo the stress and indignity she suffered.

Age discrimination is not merely a legal issue; it is a human one. We will all age. Creating a workplace that respects tenure and experience protects everyone’s future. Whether you are an employee facing bias or an employer seeking to avoid liability, understanding the high stakes of age discrimination is the only way forward.

Hostile Work Environment Laws: A Guide for Employees

Workplace harassment creates an illegal hostile work environment. Consult Helmer Friedman LLP for more info.

Hostile Work Environment Laws: What You Need to Know

A workplace should be a space for professional growth and collaboration, not a source of fear and discomfort. Yet, for many employees, the daily reality is far from this ideal. When unwelcome conduct based on protected characteristics like race, sex, or religion becomes so severe that it creates an intimidating or abusive atmosphere, it crosses a legal line, becoming a hostile work environment. Such an environment not only corrodes morale and productivity but also has significant legal implications for employers who fail to prevent it.

Understanding the legal framework that defines and governs a hostile work environment is the first step toward safeguarding employee rights and ensuring corporate accountability. This guide will walk you through the essential laws, what constitutes illegal harassment, and the steps both employees and employers can take to address and prevent it.

The Legal Framework Defining Workplace Hostility

Both federal and state laws establish the legal basis for what constitutes a hostile work environment. These statutes are designed to protect employees from discrimination and harassment based on specific, protected characteristics.

Federal Law: Title VII of the Civil Rights Act

At the federal level, the primary law is Title VII of the Civil Rights Act of 1964. This landmark legislation prohibits employment discrimination based on race, color, religion, gender, and national origin. It applies to employers with 15 or more employees. Over the years, its protections have been expanded through court rulings and other laws, such as the Americans with Disabilities Act (ADA) and the Age Discrimination in Employment Act (ADEA), to include disability and age (40 and over).

State Law: California’s Fair Employment and Housing Act (FEHA)

Many states have their own anti-discrimination laws that often provide broader protections than federal law. In California, the Fair Employment and Housing Act (FEHA) is a powerful tool for employees. FEHA prohibits harassment based on a wide range of protected categories and applies to all employers, regardless of size. Crucially, FEHA mandates that employers “take reasonable steps to prevent and correct wrongful (harassing, discriminatory, retaliatory) behavior in the workplace.”

The EEOC’s Definition of Harassment

The U.S. Equal Employment Opportunity Commission (EEOC) is the federal agency responsible for enforcing anti-discrimination laws. The EEOC defines harassment as unwelcome conduct that is based on a protected characteristic. This conduct becomes unlawful where:

  1. Enduring the offensive conduct becomes a condition of continued employment, or
  2. The conduct is severe or pervasive enough to create a work environment that a reasonable person would consider intimidating, hostile, or abusive.

This “severe or pervasive” standard is critical. It means that a single, minor incident or an offhand comment is typically not enough to be illegal. Instead, the behavior must be persistent or so egregious that it fundamentally alters the employee’s work environment.

What Constitutes a Hostile Work Environment?

Not all unpleasant workplace behavior is illegal. For conduct to be considered legally hostile, it must be both unwelcome and pervasive or severe. The behavior must be subjectively abusive to the person affected and objectively hostile to a reasonable person in the same situation.

Examples of prohibited behaviors that can contribute to a hostile work environment include:

  • Verbal Conduct: This includes telling racist or sexist jokes, using derogatory slurs or epithets, making degrading comments about an individual’s body, or issuing verbal threats. It also covers verbal abuse, mockery, and unwelcome sexual advances.
  • Physical Conduct: Unwelcome touching, physical assault, and impeding or blocking an employee’s movement are clear examples of prohibited physical conduct.
  • Visual Displays: Displaying sexually suggestive or racially insensitive objects, pictures, cartoons, or posters can create a hostile environment. This includes imagery with a sordid history, such as swastikas or nooses.

Courts consider several factors when determining if conduct is severe or pervasive, including the frequency and severity of the conduct, whether it was physically threatening or humiliating, and whether it unreasonably interfered with an employee’s work performance.

Common Types of Workplace Harassment

Harassment that creates a hostile work environment can manifest in several forms, often tied to a specific protected category.

  • Sexual Harassment: This includes unwanted sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature. It can take the form of quid pro quo harassment, where an employment decision is based on an employee’s submission to or rejection of sexual advances, or it can create an offensive environment through pervasive, unwelcome sexual comments or actions.
  • Racial Harassment: This involves discriminatory conduct based on a person’s race or ethnicity. It can range from racial slurs and offensive remarks to displaying symbols associated with racial hatred.
  • Religious Harassment: Treating an employee unfavorably because of their religious beliefs, or making offensive remarks about their religion, constitutes religious harassment. This also includes an employer’s failure to provide reasonable accommodations for an employee’s religious practices.
  • Other Protected Categories: Harassment based on age, disability, national origin, sexual orientation, or gender identity is also prohibited and can form the basis of a hostile work environment claim.

Employer Responsibilities to Prevent Harassment

Under laws like the Fair Employment and Housing Act (FEHA), employers have an affirmative duty to prevent harassment. This requires proactive measures, not just reactive responses. An effective anti-harassment program includes:

  • A Clear, Written Policy: Employers must have a comprehensive anti-harassment policy that is easy to understand and regularly distributed to all employees.
  • Mandatory Training: California law requires employers to provide regular harassment prevention training for all employees, with specialized training for supervisors.
  • A Fair Complaint Process: There must be a clear and accessible procedure for reporting harassment.
  • Prompt and Thorough Investigations: When a complaint is made, employers must conduct a prompt, impartial, and thorough investigation. This helps stop the behavior and sends a message that the company takes harassment seriously.
  • Appropriate Remedial Action: If an investigation confirms misconduct, the employer must take prompt remedial action that is designed to stop the behavior and prevent its recurrence.

Employee Rights and Legal Recourse

If you are experiencing harassment at work, creating a hostile work environment, you have rights and several options.

  • Report the Harassment: The first step is often to report the conduct internally to your supervisor, a designated HR representative, or anyone in your supervisory chain. Your employer cannot fix a problem it doesn’t know about.
  • Document Everything: Keep a detailed record of every incident of harassment. Note the date, time, location, what was said or done, and who was present. Save any emails, texts, or other physical evidence.
  • Legal Recourse: If your employer fails to take action, you can file a complaint with a government agency like the DFEH in California or the federal EEOC. You also have the right to file a lawsuit against your employer. Remedies for a successful claim can include reinstatement to your job, back pay, and damages for emotional distress.

It is illegal for an employer to retaliate against an employee for reporting harassment or participating in an investigation.

The Damaging Impact of a Hostile Workplace

The consequences of a hostile work environment are severe for both employees and employers. For employees, the emotional and psychological toll can be devastating, leading to anxiety, depression, and other stress-related health issues. For employers, the costs can be immense, including legal fees, settlement payouts, decreased productivity, and damage to the company’s reputation.

Take Action to Protect Your Rights

No one should have to endure a hostile work environment. Understanding your rights is the first step toward holding employers accountable and ensuring workplaces are safe and respectful for everyone. If you believe you are a victim of workplace harassment, it is crucial to seek professional legal guidance.

The attorneys at Helmer Friedman LLP are dedicated to fighting for the rights of employees who have been subjected to discrimination and harassment. We offer confidential consultations to help you understand your options and take the next step. Contact Helmer Friedman LLP today to speak with an experienced employment lawyer.

Toxic Workplaces Created by Racial Harassment

Haitian welder experienced extreme racial harassment at work.

Fednol Pierre’s Ordeal at Waste Pro: A Call for Change Against Racial Harassment

Racial harassment in the workplace is not just dehumanizing—it is illegal. Fednol Pierre’s experiences at Waste Pro serve as a heartbreaking reminder of how prejudice can transform a job into a daily battle for dignity and respect. His story underscores the urgent need to confront racism, hold employers accountable, and demand better workplaces for everyone.

A Devastating Pattern of Harassment

When Fednol Pierre started working at Waste Pro, he quickly found himself the target of racial harassment that went far beyond isolated incidents. On his first day, a co-worker dismissed him with hostility, saying, “There is no need for you here,” followed by a racial slur. This was just the beginning of a pattern of abuse that would escalate over the days and weeks.

Colleagues bombarded Pierre with offensive remarks, including statements such as:

  • “Go back to Haiti, (n-word);”
  • “Y’all don’t belong here;”
  • “Go back on the banana boat;”
  • “This is Trump country.”

These heinous and openly hostile comments were not whispered—it all happened in the presence of other employees, making the atmosphere suffocating and reinforcing a toxic workplace culture.

The harassment became even more deliberate when Pierre and another Black employee discovered a stuffed monkey holding an American flag deliberately placed in his work area. This cruel and degrading act, described in a lawsuit as placing a “gorilla” in his space, was a clear attempt to humiliate him further.

When Pierre tried to address the abuse, retaliation followed. Co-workers began to isolate him by refusing to communicate about auto-repairs. They deliberately assigned him the hardest welding tasks during the night shifts. To make matters worse, they locked essential welding tools in personal lockers, deliberately hampering his ability to complete his duties.

A Violation of Federal Protections

Actions like those endured by Pierre are not just morally repugnant — they are blatant violations of Title VII of the Civil Rights Act of 1964. This federal employment law explicitly prohibits employers from discriminating against employees based on their race and forbids harassment, including creating a hostile work environment and retaliating against individuals who report such behavior.

By allowing such harassment to occur—unchecked—and by retaliating against Pierre for seeking accountability, Waste Pro likely failed to meet even the most basic legal obligations of workplace equity and fairness.

The Emotional Toll of Discrimination

The psychological effects of discrimination and harassment are profound and far-reaching. For Pierre, enduring these attacks day after day likely meant confronting trauma that impacts not only his ability to thrive professionally but also his overall mental well-being.

It’s hard to quantify the exhaustion that comes from working in a space where you are devalued, demeaned, and deliberately targeted. Victims like Pierre often experience anxiety, depression, and an enduring sense of isolation. How can anyone focus on doing their best work when they’re constantly bracing for the next insult or act of sabotage?

Beyond individuals, the emotional toll of harassment has ripple effects. Toxic workplaces are breeding grounds for disengagement, reduced morale, and high turnover. They harm not only victims but entire organizations, stunting growth, fostering distrust, and eroding productivity.

The Cost to Society and Culture

Workplace harassment like this doesn’t just erode individual dignity; it undermines societal progress. When toxic behaviors are tolerated or ignored, they perpetuate patterns of inequality while discouraging talented individuals from contributing fully to the workforce.

Every incident that goes unaddressed normalizes discriminatory behavior and creates additional layers of silence. When victims learn not to speak up out of fear of retaliation—or when perpetrators face no consequences—workplace harassment becomes embedded, perpetuating harm for future generations.

Why Reporting Discrimination is Crucial

Creating meaningful change begins with exposing injustices. Reporting harassment and holding employers accountable are essential steps in dismantling toxic cultures. Individuals, however, should not have to carry the burden of change alone. It requires collective action from employers, colleagues, and advocates.

Employers must take proactive steps to foster safe workplaces, respond rapidly to complaints, and actively combat racism and intolerance. Colleagues need to be active allies, calling out harmful behavior and supporting those who speak up. Society as a whole must demand transparency and consequences for organizations that fail to meet their legal and ethical responsibilities.

Steps You Can Take to Create Safer Workplaces

If you or someone you know has experienced racial harassment, here are practical steps to support victims and advocate for justice:

  1. Document Everything: Victims should keep a detailed record of every incident, noting dates, times, locations, and any witnesses. This evidence is invaluable in pursuing legal action.
  2. Report Harassment Promptly: Notify supervisors, human resources, or use the company hotline systems to report instances of discrimination. If those channels fail, external organizations like the EEOC provide additional avenues for assistance.
  3. Seek Legal Counsel: Victims of harassment and retaliation should consult experienced employment attorneys to understand their legal rights and options for pursuing justice.
  4. Educate Yourself and Others: Encourage anti-discrimination training in workplaces and spread awareness about the signs of workplace bias and harassment.
  5. Be an Ally: Stand up against injustice when you witness it. Support coworkers who come forward by listening, believing, and amplifying their voices.
  6. Advocate for Stronger Policies: Push for diversity initiatives, zero-tolerance harassment policies, and clear repercussions for offenders.

The Fight for Fairness Continues

The racial harassment that Fednol Pierre endured at Waste Pro is a sobering reflection of the systemic issues that still plague workplaces across our nation. But stories like his are also calls to action. By shining a light on these injustices, insisting on accountability, and standing in solidarity with those who demand change, we can build a better future.

This fight is not just about protecting individual victims of harassment. It’s about ensuring workplaces everywhere are safe, equitable, and empowering spaces—where everyone, regardless of race, ethnicity, or background, can thrive.

Now is the time for action. Together, we can stop harassment and discrimination once and for all.

Triumph: Standing Against Gender Identity Harassment

Gender identity harassment is a civil rights violation - contact the gender identity harassment lawyers Los Angeles - Helmer Friedman LLP.

Today, we bring you an encouraging tale from the corporate world, a story of courage, resilience, and justice. This is the saga of a manager at Columbia River Healthcare Inc. who swam against the tide of adversity. This person, preferring gender-neutral pronouns, was subjected to harrowing discrimination and harassment, not only from the staff but also from the management of the organization.

For over six months, even after the manager had courageously disclosed their gender identity and choice of pronouns, the inappropriate and disrespectful behavior continued. It was a blatant disregard for the manager’s personal preferences and a clear violation of Title VII of the Civil Rights Act of 1964, which prohibits any form of discrimination and harassment based on sex, including gender identity.

“Accidental slip-ups may happen, but repeatedly and intentionally misgendering someone is a clear form of sex-based harassment,” said Elizabeth M. Cannon, director of the EEOC’s Seattle Field Office. “Employers have a duty to intervene when employees—including transgender, non-binary, and other gender non-conforming individuals—are treated maliciously in the workplace because of their gender identity. Training can be a powerful tool for informing employees of their rights and proactively preventing harassment.”

This manager, unfortunately, fell victim to a hostile work environment. They were continuously and intentionally addressed with pronouns that conflicted with their gender identity. Attempts to address this issue internally were futile, resulting in no appropriate action from Columbia River Healthcare.

However, this cold shoulder from management did not deter the supervisor from standing up for their rights. They had the courage to fight back against this clear violation of their rights.

It is worth noting that in the landmark case of Bostock v. Clayton County in 2020, the U.S. Supreme Court clarified that Title VII’s protections extend to discrimination and harassment on the basis of gender identity or expression. This means employers cannot discriminate against their employees or potential applicants – by refusing to hire, firing, harassing, or any other means – based on their gender identity.

So, what happened to our brave manager at Columbia River Healthcare? After a prolonged struggle for justice, the manager triumphed. The healthcare company was required to compensate them, revise its non-discrimination policies, provide employee training, and ensure additional training for managers and staff involved in investigating employee complaints of discrimination and harassment.

If you or someone you know is enduring similar discrimination and harassment, be aware that legal avenues exist. Hiring a gender discrimination lawyer can be your best bet to navigate this challenging terrain. With their expertise in discrimination law, they can help you understand your rights and formulate the best legal strategy.

Remember, no one should ever endure humiliation or discrimination because of their identity. Stand up for your rights and keep this manager’s story a guiding light of hope, reminding you that justice can prevail.