Allen Theatres Settles Age Discrimination Lawsuit
The spotlight turns toward Allen Theatres, Inc., a prominent movie theater chain operating across New Mexico, Arizona, and Colorado, as they resolve a significant age discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC). The lawsuit, alleging that the company forced a seasoned manager into retirement based solely on his age, has settled for $250,000.
On April 10, the EEOC announced the resolution of a lawsuit concerning age discrimination, specifically targeting Allen Theatres. The EEOC claimed that the company unjustly compelled a 73-year-old manager to retire. This manager, who had been with the company for 31 years, was not invited to return to work when the theaters began reopening in March 2021 after the COVID-19 pandemic-induced closures.
In addition to this, the EEOC accused Allen Theatres of implementing an unfair health insurance policy. The policy allegedly allowed the company to refuse payment for employees’ health insurance upon reaching 65 and becoming eligible for Medicare. This age-based discrimination resulted in reduced compensation for employees aged 65 and older, according to the EEOC.
Allegations and Violations
The allegations suggested that Allen Theatres breached the Age Discrimination in Employment Act (ADEA). This federal law prohibits the discrimination of employees aged 40 and above regarding hiring, firing, and compensation.
The EEOC’s findings indicated that the company’s actions not only affected the retired manager but also highlighted broader systemic issues within the company’s employment practices.
Consent Decree Stipulations
Pursuant to a two-year consent decree, Allen Theatres is now mandated to extend health insurance offerings to every employee aged 65 and above who is not presently enrolled. The company must also update its policies to ensure age discrimination is strictly prohibited and enhance its investigative and training protocols to address age discrimination more robustly.
The settlement further mandates comprehensive training programs: nonmanagerial employees must undergo one hour of Equal Employment Opportunity training annually. Managerial and supervisory employees are required to attend three hours of annual training on the ADEA and other anti-discrimination laws overseen by the EEOC, while HR staff must participate in five hours of training on federal anti-discrimination laws.
EEOC Statements and Implications
Melinda Caraballo, district director of the EEOC’s Phoenix district office, emphasized the necessity for employers to train their staff to recognize and prevent discriminatory treatment, ensuring equal benefits regardless of age.
Mary Jo O’Neill, regional attorney for the EEOC’s Phoenix district, stated, “It violates federal anti-discrimination law for managers or any corporate officers to force workers over the age of 40 to involuntarily retire because of their age.” She further highlighted the concern over imposed retirement on capable and willing older employees.
The EEOC’s complaint, filed on September 27, 2024, in the U.S. District Court for the District of New Mexico, pointed out that the theater company’s president had defended his decision as legally permissible due to the manager reaching “normal retirement age.”
Unyielding Accountability
While Allen Theatres has consented to the settlement, the company spokesperson was not immediately available for comment. The settlement stands as a cautionary tale and a poignant reminder in the employment sector that age discrimination laws are rigorous and imperative for fostering equitable workplaces.
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