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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.

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Disguise of Age Discrimination and Wrongful Termination

Disguising age discrimination, wrongful termination using fake performance reviews.

When Linda received the termination letter, its sterile language citing “performance issues” felt like a slap in the face after 25 years of unwavering loyalty to her company. Bewilderment quickly morphed into disbelief as she recalled the countless annual reviews, each more glowing than the last. “I had been praised for my contributions year after year,” the 61-year-old former marketing manager reflected, her voice tinged with heartbreak. “Yet, in an instant, I was told I was no longer meeting expectations.” It wasn’t until she inadvertently overheard a department manager discussing plans to “bring in fresh, young talent” that the unnerving truth began to crystallize—her dismissal was not rooted in performance but rather in age.

Linda’s experience is far from isolated. In a troubling trend sweeping through industries, employers have increasingly turned to exculpatory documentation—a sophisticated means of obscuring acts of unlawful age discrimination or masking wrongful termination practices. This disturbing shift not only infringes on employee rights but also raises significant legal and ethical dilemmas that organizations must confront head-on.

What Is Exculpatory Documentation?

Exculpatory documentation encompasses an array of paperwork or records that employers fabricate to rationalize potentially unlawful employment actions, such as terminations, shielding themselves from legal repercussions. This subterfuge could involve retroactive performance reviews, concocted infractions, or meticulously drafted memos designed to cast employees in a disparaging light. While these documents may appear legitimate at first glance, their true purpose often serves to construct a defensive fortress against potential lawsuits related to age discrimination or wrongful termination, particularly under legislation like the Age Discrimination in Employment Act (ADEA).

“The use of these tactics is deeply troubling,” says Greg Helmer, an employment law attorney specializing in wrongful termination cases. “Instead of fostering fair workplaces, companies are weaponizing documentation to insulate themselves while undermining employees’ legal protections against discrimination.”

How Employers Exploit Exculpatory Documentation to Target Older Employees

Despite the legal prohibitions against age discrimination, this insidious practice continues to thrive in workplaces across the nation. According to reports from the Equal Employment Opportunity Commission (EEOC), complaints related to age account for over 20% of all discrimination claims filed annually. The challenge lies in gathering the evidence necessary to substantiate claims of age discrimination, especially when employers intentionally create misleading records to justify their actions.

Here’s how this disturbing narrative often unfolds:

  • Sudden Decline in Performance Ratings

    After years of consistent commendation, older employees may suddenly find themselves the recipients of unfavorable performance reviews. Employers can inflate minor missteps or fabricate issues entirely, knowing these reviews will later serve as “evidence” if the employee dares to contest their termination in court.

  • The “Documentation Trail”

    Employers frequently construct extensive paper trails detailing alleged infractions—instances of tardiness, miscommunication, or missed deadlines are documented with an alarming selectivity. These notes often exaggerate trivial mistakes or omit crucial context, painting older employees as incompetent or unqualified for their roles.

  • Silent Preferences for a Younger Workforce

    Behind closed doors, age discrimination often masquerades as “strategic shifts” meant to modernize or rejuvenate the company. However, what is often veiled as “progress” frequently acts as a thinly disguised campaign to target older employees through methods designed to slip beneath the radar of scrutiny.

How Exculpatory Practices Disguise Wrongful Termination

Rather than cultivating equitable workplaces, companies are weaponizing documentation to protect themselves while systematically undermining employees’ legal safeguards against discrimination.

Proving wrongful termination requires compelling evidence that a firing was unlawful. However, when exculpatory documentation is meticulously crafted, employers can manipulate the narrative to convince observers their decisions stand on solid ground. This calculated obfuscation undermines the allegations of age discrimination and shifts the burden of proof onto the terminated employee. “It complicates cases significantly because, in court, the burden often rests heavily on the employee’s shoulders,” explains employment lawyer Andrew H. Friedman.

 

The implications of such practices extend far beyond individual employees to the workplace at large:

  • Workplace Fear and Distrust

    Colleagues who witness unjust terminations may feel an overwhelming sense of fear, hesitant to speak out against systemic discriminatory practices, thus fostering an insidious culture of silence.

  • Erosion of Organizational Morale

    The chilling ramifications of wrongful terminations reverberate through the workforce, eroding morale and instilling feelings of vulnerability, particularly among older staff members who may fear for their own job security.

 

In this landscape, the battle against age discrimination remains perilous, necessitating vigilance and advocacy to protect the rights of those who have dedicated years to their professions.

It wasn’t until she inadvertently overheard a department manager discussing plans to “bring in fresh, young talent” that the unnerving truth began to crystallize—her dismissal was not rooted in performance but rather in age.

How Can Employees Protect Themselves?

Navigating the murky waters of exculpatory documentation is no easy feat, but there are steps employees can take to protect themselves.

  1. Request Written Records

    If you notice sudden changes to your performance reviews or shift assignments, request formal documentation outlining specific concerns and expectations. Often, companies will hesitate to put unfounded claims into writing.

  2. Keep Your Own Records

    Maintain personal files of performance reviews, emails, and written commendations. These documents can serve as vital evidence if discrepancies occur in the employer’s narrative during litigation.

  3. Challenge Unfair Documentation Immediately

    Address dubious claims head-on by discussing them with HR or your direct supervisor in writing. Document your objections and ensure you keep copies of all interactions.

  4. Seek Legal Counsel Early

    If you suspect age discrimination or retaliation, consulting with an employment lawyer experienced in handling wrongful termination claims is crucial. They can advise you on the strength of your case and guide you through the complexities of employment law.

Holding Employers Accountable

Organizations need to understand that subtle age discrimination and wrongful termination practices are not only unethical but often illegal under U.S. labor laws. Misusing documentation is a short-sighted solution that will ultimately harm businesses through potential lawsuits, reputational damage, and the loss of talent.

“As long as companies use exculpatory methods you’re going to see more lawsuits than they anticipate,” warns employment lawyer. “No document—fabricated or not—will gloss over the sheer unfairness of systemic workplace discrimination.”

Know Your Rights

Employees have the right to be treated fairly and judged solely on their performance—not their age or any demographic factors that reflect bias. Whether you’ve been subjected to suspicious performance reviews or suspect age discrimination in your firing, employment laws are in place to safeguard against these injustices.

Have questions about your rights or wrongful termination? Reach out for expert guidance to determine your next steps. You deserve to work in an environment that values your contributions regardless of your age.

Don’t allow exculpatory practices to rewrite your story. Stay informed, stand your ground, and, when in doubt, seek legal counsel to ensure justice is served.