The federal Equal Employment Opportunity Commission (EEOC) has entered a consent decree in an age discrimination lawsuit against movie theatre chain, Allen Theatres, Inc. (Allen). Charges included forced retirement of a 30-year theatre manager because he was 73 years old, stopping health coverage when employees reached 65 years and Medicare eligibility, and paying less to employees over 65.

All of these acts violated the Age Discrimination in Employment Act (ADEA), prohibiting discrimination against people 40 and over in hiring, termination, compensation, benefits, and other employment actions.

The consent decree is in effect for two years and requires Allen to:

• Pay $250,000 to the older workers against whom it discriminated;
• Offer health insurance to workers 65 and older; and
• Revise its policies to prohibit age discrimination and require training and investigations of such discrimination.

Mary Jo O'Neill, regional attorney for the EEOC's Phoenix District Office, said:. "It violates federal anti-discrimination law . . . to force workers ... to involuntarily retire because of their age. Employers should not impose their ideas about when older employees should quit working, especially for those employees who want to work, are qualified to work, and are doing a good job."

The affected older employees expressed their gratitude to the EEOC for protecting their rights.

Take-Away:

Employers must avoid discriminating against prospective and current employees on any protected basis, including age. Older people (defined as 40 years or older) qualified to work cannot be treated differently from anyone else.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• Unsplitting Hairs: Race Discrimination Clarified (November 8, 2024)
• Superstore to Pay $75,000 for Disability Discrimination and Retaliation (August 30, 2024)
• Staffing Agency Meltdown: Discrimination Settlement Shuts Down National Firm (April 12, 2024)

Helena Kobrin
May 9, 2025