Monday, January 13, 2014

Franklin County Court of Appeals Reverses Disparate Age Impact Verdict against ODNR Based on Informal Policy Against Double Dipping

Last week, a divided Franklin County Court of Appeals reversed a $507K verdict issued by the Court of Claims last year, finding that ODNR unlawfully discriminated on the basis of age when it refused to re-hire a retired employee and best qualified applicant based on an informal policy generally precluding the re-hire of retired employees because of the public’s skepticism with “double dipping.”  Warden v. Ohio Department of Natural Resources, No. 2014-Ohio-35.  The Court of Claims Judge had dismissed the disparate treatment claim, but determined that the policy had a disparate impact against individuals over the age of 40 because it only applied to retired employees, who necessarily would be in the protected age group.  The Court of Appeals disregarded similar cases decided on summary judgment because while those cases recognized the legal theory being advocated by the plaintiff, they did not mandate a verdict in the plaintiff’s favor on the disparate treatment claim when the trial court resolved the facts against the plaintiff.  The Court also noted that the plaintiff had failed to plead or prove a disparate impact theory in his complaint, during summary judgment pleadings or at trial.  “The fact that ODNR's policy theoretically could only impact members of a protected class is not sufficient to prove a disparate impact claim.”  In this case, the evidence showed only that the policy affected two previously-retired applicants and the employer hired one of them. “An adverse effect on a single employee, or even a few employees, is not sufficient to establish disparate impact."

The Court agreed that the anti-retiree policy was not motivated by unlawful discriminatory intent because it was, instead, “motivated by a desire to prevent double-dipping as opposed to inaccurate and stigmatizing stereotypes about older workers.”

"When the employer's decision is wholly motivated by factors other than age, the problem of inaccurate and stigmatizing stereotypes disappears." (Emphasis sic.) Id. at 611. Therefore, there is no disparate treatment when the factor motivating the employer is some feature other than the employee's age.

NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.