Get more! Sign up for PLANSPONSOR newsletters.
Appeals Court Reinstates Age Discrimination Case
The US 3 rd Circuit Court of Appeals sent plaintiff Stephen Fakete’s suit back to a District Court jury to decide whether Aetna US Healthcare fired Fakete because of his age, according to the Legal Intelligencer. The appeals court said Fakete had evidence that his supervisor told him the employer was “looking for younger, single people.”
“Viewed favorably to Fakete, the
statement shows that (Supervisor Thomas) Larkin preferred
‘younger’ employees and planned to implement his preference
by getting rid of Fakete,” Circuit Judge Thomas
Ambro wrote, according to The Legal Intelligencer.
“Larkin made his statement in direct response to a question
from Fakete about how he fit into Larkin’s plans. In this
context, a reasonable jury could find that Larkin’s
statement was a clear, direct warning to Fakete that he was
too old to work for Larkin, and that he would be fired soon
if he did not leave Aetna on his own initiative,”
The ruling reverses a May 2001 decision by US District Judge John Padova of the Eastern District of Pennsylvania that rejected Fakete’s claims
Plaintiff Was the Oldest Audit Consultant
According to court papers, Fakete was hired by US
Healthcare in April 1992 as an audit consultant. In
1996, USHC merged with Aetna to form Aetna U.S.
Healthcare.
At the time of the merger,
Fakete was 54 years old and the oldest audit consultant
at USHC. The merger agreement prevented Aetna from
terminating any USHC employees for at least two years
following the merger, absent approval from a USHC
executive.
That agreement expired in July
1998, when Fakete was 56 years old and eligible to
retire on a substantial pension within three years. At
the same time, Aetna reorganized its audit department,
and Larkin became Fakete’s supervisor.
Fakete claims that when he asked
Larkin about his future with the company, Larkin
responded that “the new management” — which included
Larkin — wouldn’t be favorable to Fakete because they
were “looking for younger single people that will work
unlimited hours,” and that Fakete “wouldn’t be happy
there in the future.”
Within a few months, Fakete
claims, Larkin issued him a written warning alleging
unexplained absences from the workplace, and threatened
to place Fakete on probation if he did not explain
future absences.
In December 1998, three months
before Fakete’s pension would have vested, the suit
alleged that Larkin fired him on charges of violating
the terms of the warning, falsifying travel expense
reports, and not reimbursing Aetna for personal phone
calls charged to his company credit card.