Shareholder Demands For Higher Corporate Earnings Have Their Price: How Courts Allow Employers to Fire Older Employees For Their Achievements

Abstract

This Comment challenges the current trend in adopting salary-based discrimination of older employees in terms of the potential harmfulness to the age discrimination laws and the detrimental effects on older personnel. Part II discusses the historical background of the age discrimination laws and the ensuing impact in determining "reasonable factors" as relating to salary-based discrimination. Part III examines the reasoning why courts believe that age and salary are discernable and do not conflict. Additionally, Part III examines the modem trend in courts to allow salary-based discrimination of older employees. Part IV analyses the modem trend to allow employers to terminate their higher paid older employees to see why the courts' policies have changed so dramatically over the past decade. In addition, Part IV will illustrate the problems associated with allowing salary-based discrimination. Part V will discuss several alternatives to discharging older employees based on higher wages. Finally, this Comment concludes that if the goal is to protect older employees from age discrimination, the adoption of salary-based discrimination is the wrong approach because alternative strategies exist for decreasing cost to the corporation without laying off successful and dedicated older workers.