Dream - The company in the United States, J&M Industries, is being sued for compensation in the form of severance pay amounting to US$105,000 or equivalent to Rp1.6 billion. This compensation is due to the company's termination of employees who have reached retirement age but do not want to stop working.
This employee has been working for nearly 20 years in the company, according to the Equal Employment Opportunity Commission (EEOC).
Quoting Business Insider, the discrimination lawsuit filed by the federal agency states that J&M Industries, Inc. violated federal age discrimination laws by terminating the employee.
Age Discrimination in Employment Act prohibits discrimination against individuals who are 40 years of age or older based on age. J&M Industries, Inc is a manufacturing and distribution company located in Louisiana.
EEOC stated that a company manager repeatedly asked the employee, who is not named, about their retirement plans as they approached their 65th birthday. The manager directly asked them, "When will you retire," "Why don't you retire at the age of 65," and "What is the reason you are not retiring?" according to the EEOC lawsuit.
When the employee told the company that they had no plans to quit working, the company then informed them that their role as a purchasing agent was eliminated due to economic uncertainty.
Miami Herald reported that the company denied firing the woman because of her age, and stated that her 39-year-old replacement had broader and more significant responsibilities than her. The company said that the comments made about her retirement plans were "deviant comments" or related to succession planning, according to the Miami Herald.
Based on the decision of a three-year agreement to settle the lawsuit, the company agrees to pay US$105,000 in the form of refunds and liquidated damages. They will also provide training, revise policies, provide regular reports to the EEOC, and post notices confirming compliance with the ADEA law.
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