Age Discrimination/Severance Agreement

After nearly 30 years of employment w/a major ins co,that entity began downsizing. My job in Kansas went to another state; because of family considerations, I cd not move at that time. I could have competed for one of the remaining jobs w/no guarantee of employment and the
possibility of walking away w/nothing. Alternatively, I
could take a buy-out and place my name on a "call-back" list
the co. would maintain for the purpose of recalling previous
employees. Given my stellar employment record, incl just having received the highest merit increase rating possible, I felt I had nothing to lose in accepting the buy-out and returning as openings occurred. Tho I had been told about the call back verbally by many management and h.r.types, and the "call-back" list was noted in the unilateral
severance agreement I had to sign, I was told just before
leaving that there really was no call back list! I later
learned of an opening for which I was qualified and inter-
viewed, only to have the company hire first a 23 and then
a 24 year old. I am nearly 50 w/no degree and limited options, feeling duped. Comment and suggestions please?

[Edited by kathyedavis on 01-01-2001 at 11:11 PM]

What you have gone through has become "normal" practice. It is illegal to "discriminate" based on age, however, it is not illegal to discriminate based on wages -- that is the new way that companies are getting around the Age Discrimination in Employment Act -- you are older, been there longer so you make more money! The company argues that they are watching the bottom line and need to cut back on high salaried people to save money.

Usually when you take a buy-out, you should not count on being re-hired. It is a way for a company to wash their hands of you.

Have you thought about putting your insurance (inside) knowledge to work at a smaller agency, the state insurance commissioner division, a pension company, bank, other large insurance companies, or even a hospital?

I appreciate your prompt reply, Buddy. I continue to seek
employment elsewhere as you suggest.

Pls give me your opinion on that disappearing callback list.
It seems to me that since my leaving the company was based
largely on its offer to rehire me via the callback list,
which was reiterated by the co in its severance agreement,
that my decision was based on their false statement and
the agreement is null and void.

Thx in advance!

What are you looking for? You want to sue for age discrimination (90% of the cases have been won by employers)? Breach of contract? Does this severance agreement have a covenant not-to-compete in it?

Some courts have said that signing a age based severance agreement does not bar you from suing. Even now they are "discussing" whether you can take the money and still sue or you must "payback" the money before suing.

Either way you want to go, you will have to consult an employment attorney. I can not believe that a major insurance company, which you say it is, with lots and lots of attorneys on staff, would not have qualified their "promise" to place your name on a call-back list in some way. Just because they said they would place your name on a "call-back" list doesn't mean an actual "list" has to exist. They have you in their database -- which is a "list" per se, it just doesn't have the words "call-back" at the top of it. As for hiring the younger people, they can always argue the money aspect -- which would fit in nicely with their downsizing and moving main operations out-of-state. It is not illegal to discriminate based on wages.

Unfortunately, I think you are beating a dead horse and your energies would be better spent finding another position.