LABOR & EMPLOYMENT June 2009 U.S. Supreme Court Issues Key Decision for Employers in Age Discrimination Case In a narrow and contentious 5-4 decision, the United States Supreme Court yesterday ruled against an age discrimination plaintiff, stating clearly that the plaintiff must prove that “but for” his age, the alleged discrimination would not have occurred. The Court’s decision in Gross v. FBL Financial Services, Inc. clarifies that unlike Title VII, the Age Discrimination in Employment Act (ADEA) does not allow a plaintiff to establish discrimination by showing that age was simply a motivating factor. Instead, the majority held that an ADEA plaintiff must prove by a preponderance of evidence that age was the “but-for” cause of the alleged adverse employment action. The majority decision in Gross rejects the application of the so-called “mixed motive” analysis to age discrimination cases. The Supreme Court first adopted the “mixed motive” analysis in 1989 in the Title VII case, Price Waterhouse v. Hopkins 490 U. S. 228 (1989) (plurality opinion). In Price Waterhouse, the Court considered sex a “substantial” or “motivating” factor for action taken against a female plaintiff. Under the Price Waterhouse analysis, when a plaintiff produces evidence that sex was a “motivating factor” in a decision, the burden of proof shifts to the employer. But, in the Gross decision, the Supreme Court majority refused to extend Price Waterhouse to ADEA cases. “Unlike Title VII, the ADEA’s text does not provide that a plaintiff may establish discrimination by showing that age was simply a motivating factor.” “[T]he ordinary meaning of the ADEA’s requirement that an employer took adverse action ‘because of’ age is that age was the ‘reason’ that the employer decided to act.” The Court further held the burden of persuasion does not shift to the employer to show that it would have taken the action regardless of age, even when a plaintiff has produced some evidence that age was one motivating factor in that decision. The majority also criticized the Price Waterhouse analysis generally. “Whatever the deficiencies of Price Waterhouse in retrospect, it has become evident in the years since that case was decided that its burden-shifting framework is difficult to apply. For example, in cases tried to a jury, courts have found it particularly difficult to craft an instruction to explain its burden-shifting framework.” In Gross, the plaintiff, Mr. Gross, was 54 years old when he alleged that his employer transferred his key responsibilities to a younger, 40-something female employee because he was too old. Mr. Gross won at trial, but the Eighth Circuit reversed the jury verdict. Yesterday’s 5-4 ruling vacates the Eighth Circuit’s opinion. Justice Clarence Thomas penned the majority decision, which was joined by Chief Justice Roberts as well as Justices Scalia, Alito and Kennedy. Veteran Justice John Paul Stevens, in one dissent, accuses the majority of ignoring “prudential court practices” and of “utter disregard of our precedent and Congress’ intent.” Justices Souter, Ginsburg, and Breyer joined in that dissent. Justice Breyer filed a separate dissent, joined by Souter and Ginsburg, where he disagreed with the narrow interpretation of the text of the ADEA. For additional information regarding this case, state or federal anti-discrimination laws or other workplace issues, please contact the Barnes & Thornburg Labor and Employment attorney with whom you work, or a leader of the firm’s Labor and Employment Law Department in the following offices: Kenneth J. Yerkes, Chair (317) 231-7513; Norma W. Zeitler, Chicago (312) 214-8312; William A. Nolan, Columbus (614) 628-1401; Eric H.J. Stahlhut, Elkhart (574) 296-2524; Mark S. Kittaka, Fort Wayne (260) 425-4616; Michael A. Snapper, Grand Rapids (616) 742-3947; Peter A. Morse, Indianapolis (317) 231-7794; Janilyn Brouwer Daub, South Bend (574) 237-1139; and Teresa L. Jakubowski, Washington, D.C. (202) 371-6366. © 2009 Barnes & Thornburg LLP. All Rights Reserved. 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