Mega firm Sidley & Austin settles age disco suit

Theinternational law firm of Sidley Austin LLP has agreed to pay $27.5million to 32 former partners who the U.S. Equal Employment OpportunityCommission (EEOC) alleged were forced out of the partnership because oftheir age, under settlement approved by a federal judge.  The EEOC brought the suit in 2005 under the federal AgeDiscrimination in Employment Act (ADEA). A major issue in the case waswhether partners in the law firm were protected as employees under theADEA. The settlement provides that “Sidley agrees that each person forwhom EEOC has sought relief in this matter was an employee with themeaning of the ADEA.”  The settlement also includes an injunction that bars the law firmfrom “terminating, expelling, retiring, reducing the compensation of orotherwise adversely changing the partnership status of a partnerbecause of age” or “maintaining any formal or informal policy orpractice requiring retirement as a partner or requiring permission tocontinue as a partner once the partner has reached a certain age.”  “This case has been closely followed by the legal community as wellas by professional services providers generally,” says Ronald S.Cooper, general counsel of the EEOC. “It shows that EEOC will notshrink from pursuing meritorious claims of employment discriminationwherever they are found. Neither the relative status of the protectedgroup members nor the resources and sophistication of the employer weredispositive here.”  The $27.5 million will be paid to 32 former partners of the firm forwhom the EEOC sought relief because they either were expelled from thepartnership in connection with an October 1999 reorganization orretired under the firm’s retirement policy.

Source/more:  HR.BLR.com, http://hr.blr.com/news.aspx?id=77249