Age Discrimination on High-Technology Companies

1. Age Discrimination on High-Technology Companies Ariani Parjanto MGMT 610 Feb 26, 2003

2. Overview What is Age Discrimination? Why is it important? Legal Law � ADEA Facts of high-tech companies Pros and Cons Types of claims & cases Suggestions

3. Age Discrimination �is the process of making decisions affecting an employee based wholly, or partly, upon the age of the employee, except in those cases where age is a bona fide occupational qualification.� (ADEA) Two forms: Age-related comments Adverse employment actions/decisions

4. Facts 78 million baby boomers reach their senior years. 1998-2008, people aged 55 and above will reach to nearly 48% ? >25 million. # of age discrimination cases: 1993 ? 2.2% 1999 ? 8.3%

5. Age Discrimination in Employment Act Protects individuals: 40 years of age or older. Protects both employees and job applicants. Discrimination include: hiring, firing, promotion, layoff, compensation, benefits, job assignments, and training. Applies to employers with 20 or more employees, state and local governments, employment agencies, labor organizations, and federal government.

6. ADEA (cont�d) Proof of age discrimination claims: Direct evidence � e.g.: comments Circumstantial evidence � �prima facie� case. The plaintiff must show that: >40 years old when action occurred Qualified for the position Suffered an adverse employment action Treated less favorably than others Employers provide legitimate nondiscriminatory reasons for the actions. If not, employers pay some amounts of compensatory damage to the employee.

7. Facts of High-Tech Companies NSA ? College-graduate workers: 45 and older : 37% Computer scientists and programmers : 23% over 55 : 12% IT field : 5% 30% of tech professionals over 45 have either witnessed or experienced �age bias.� ITAA ? 346,000 unfilled IT positions. Older people are struggling with their job search.

8. Pros Employer�s perceptions about older workers: Do not have the energy and commitment of younger workers. Less willing to work long hours. Resistant to change. Lack the precise set of skills and experience demanding in the job description. More afraid to learn technology. Present a cultural mismatch in the youth-oriented IT field. �Overqualified� � requiring too high salary.

9. Cons Difficulties in finding jobs does not prove age discrimination. E.g.: Intel average employee age ? 36 invest in employee training difficulties to find senior qualified talent Older workers are valuable because: better communicators problem solver

10. Types of Claims Claims based on �technological� needs. e.g.: Qualcomm, Inc. Sheehan v. Daily Racing Form, Inc. Claims based on age-related statements. e.g.: Notaro v. Digital Equipment Corp. Claims based on reduction in workforce. e.g.: Hartley v. Wisconsin Bell, Inc.

11. Preventing from age discrimination Why? Filing lawsuits: Expensive Time consuming The victory is uncertain Emotionally distractive

12. Suggestions For employees: Update skills � job-related training. Networking: enhance relationship with people search for jobs through Internet, list-services, social events, etc. Inside information - find the criteria for layoff e.g.: seniority. Talk to HR director Documentation � records of events, memos, comments, dates, names of people, and job evaluation.

13. Suggestions (cont�d) For employers/companies: Internal training ADEA Technology & job-related topic Documentation: Reasons of actions Employees� performance evaluation Audit prior to workforce reduction Offer an early retirement incentive plans with attractive packages instead of layoff older workers.

14. Questions or Comments? �Judge your people for what�s in their heads, not for what�s on their heads.� -Harvey Ettig.