U.S. Chamber Files in Age Discrimination Cases

Two Briefs Argue Against Use of 'Disparate Impact' Arguments  

Meacham v. KAPL/Lockheed Martin (PDF)

Sitko v. Goodyear (PDF)

WASHINGTON, D.C. - The United States Chamber of Commerce filed two legal briefs, arguing that 'disparate impact' claims cannot be brought in age discrimination cases. Meacham v. KAPL/ Lockheed Martin and Sitko v. Goodyear involve employees who filed suit under the Age Discrimination in Employment Act (ADEA) when they lost their jobs during company staffing cutbacks. The employees filed age discrimination claims under both "disparate treatment" and "disparate impact" theories of liability.

"All employees will inevitably grow older and, over time, will experience an increase in compensation, pension and seniority because of age," said Stephen Bokat, Chamber general counsel and executive vice president of the Chamber's National Litigation Center. "During layoffs to cut costs, older, more highly-paid workers will almost always be selected disproportionately to younger workers. While age discrimination should not be tolerated, the disparate impacts of cost-cutting reductions in force do not signify age discrimination."

Disparate treatment claims focus on an employer's discriminatory motive-treating employees differently on the basis of a protected class. In comparison, disparate impact claims seek to show that an employer's facially neutral policy has an adverse impact on a protected class. While disparate impact claims are recognized under Title VII of the Civil Rights Act, which prohibits discrimination based on race, color, religion, sex, and national origin, courts disagree on whether disparate impact claims may be asserted in age discrimination claims.

At the trial courts in both cases, the employees' claims for disparate treatment claims on the basis of age failed. The court in the Goodyear case dismissed the plaintiffs' disparate impact claims, while the jury in the KAPL/Lockheed Martin found the plan did have a disparate impact. Both cases have been appealed to federal circuit courts.

The U.S. Chamber urges both courts to consider why the disparate impact theory of liability should not apply to age discrimination claims, focusing on why age discrimination claims are different from discrimination claims based on race or gender under Title VII.

The Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.