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REFUSING TO REHIRE RETIRED EMPLOYEES: IS THAT DISCRIMINATION?
EEOC has filed a class action lawsuit against AT&T and related subsidiaries alleging that AT&T violated the Age Discrimination in Employment Act (ADEA) by refusing to rehire former employees who had taken early retirement. The complaint claims that this practice disproportionately and adversely affects workers over 40 and that the policy has no legitimate business basis. AT&T has not yet filed an answer in the case or otherwise commented about it.
This is a case worth following because it has potentially broad impact both for early retirees and for companies who in many cases have offered financial packages to those employees to encourage their early retirement. The fact that EEOC has taken this position has to be carefully considered by companies that are planning similar restrictions on re-employment for retired personnel.
