As the baby boom generation enters its 40s and 50s, the number of workers protected under age discrimination laws continues to skyrocket. And while you’re probably aware of the most common legal issues involving older employees – such as discrimination and mandatory retirement – one recent ruling points out an unexpected and potentially expensive threat. When a 59-year-old employee won a sexual harassment lawsuit against her employer, the jury awarded her not only $425,000 in damages, including lost earnings, but it tacked on another $603,000 for future lost wages – pointing out that her age and poor health made it unlikely she would find another job. In upholding the jury’s award, the Ninth Circuit Court of Appeal has opened the door to significantly more costly claims by older workers.
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Older Worker Subjected To Sexual Harassment
Meriola Gotthardt worked for Amtrak in the San Francisco Bay Area in a variety of positions, including yard engineer. For several years, she unsuccessfully sought to become an engineer on several specific train routes. During that time, Gotthardt claimed that supervisors frequently called her sexually insulting and degrading names and that she was subjected to a hostile work environment. Gotthardt eventually called in sick and never returned to work. She was later diagnosed as suffering from post-traumatic stress disorder.
Jury Awards Future Earnings
Gotthardt sued Amtrak for sexual harassment, and a jury awarded her $300,000 in compensatory damages and $124,010 for wages she had lost since leaving her job. However, the jury also awarded her $603,928 in so-called “front pay” for the 11 years of future wages and benefits she would have earned if she had stayed until Amtrak’s legally mandated retirement age of 70.
Qualifications And Disability Justify Award
Amtrak appealed the jury’s front pay award, but the Court of Appeal ruled for Gotthardt. The court first held that the $300,000 cap on damages contained in federal anti-discrimination laws does not apply to awards of lost earnings – including past or future wages. It also rejected Amtrak’s argument that the jury was not justified in awarding future earnings to Gotthardt, but should have instead ordered the railroad to rehire her. The court ruled that given Gotthardt’s stress disorder, she couldn’t return to work. The court concluded that Gotthardt was entitled to the wages she would have earned for the full 11 years until retirement because her age, educational background and poor health made it unlikely she could reduce her damages by finding another job elsewhere.
Caution Required
Older workers who believe they have been wrongfully terminated or discriminated against – especially those in poor health or with limited job skills – can use this decision to justify large claims for future lost earnings. And as the court made clear, there is no cap on how much a jury can award for those types of damages. To protect yourself, always be extra cautious when responding to workplace complaints by older employees. If a dispute arises, consider offering the worker a transition package of severance benefits that could include outplacement counseling and cash. In exchange, have the worker sign a release promising not to sue – and be sure to follow the specific rules governing waivers of age-related claims.