Recent Supreme Court Decision Makes it More Difficult to Sue Employers for Age Discrimination
(June, 2009) By Jeffrey K. Tittsworth, Summer Associate.
For more information, contact Paul Farquharson.
Gross v. FBL Financial Servs., Inc., No. 08-441 (S.
Ct. Oct. 2008)
The Supreme Court of the United States recently decided a
case making it more difficult to prove age-based employment discrimination. In a
5-4 decision, the Court rejected the idea that cases brought under the Age
Discrimination–Employment Act (ADEA) were similar to those brought under Title
VII of the Civil Rights Act, which allows plaintiffs who present minimal
evidence of illegal discrimination to shift the burden of proof to employers,
requiring employers to prove that they did not act with discriminatory intent.
Instead, the Court determined that plaintiffs alleging age discrimination must
sue the standard way: by presenting sufficient evidence to convince a judge or
jury of the illegal activity.
Gross v. FBL Financial Services, Inc. involved Jack Gross, a
longtime employee of FBL Financial Services, Inc., an insurance company in Des
Moines, Iowa. At the age of 54, Gross was stripped of his title of Vice
President and given a position with significantly less responsibility. After his
prior position was filled by a worker in her early 40s, Gross sued, claiming
that his demotion was in violation of the ADEA, which makes it unlawful for an
employer to take adverse action against an employee "because of such
individual's age." At trial, Gross presented circumstantial evidence that age
played a role in his reassignment, while FBL defended by arguing Gross'
reassignment was the result of a corporate restructuring and that Gross' new
position was more commensurate to his skills.

Over FBL's objections, the trial judge instructed the jury
to return a verdict for Gross if he proved, by a preponderance of evidence, that
FBL demoted him and that his age was "a motivating factor." The jury was further
instructed that Gross' age would qualify as a "motivating factor" if it played a
part or a role in FBL's decision to demote him. By offering evidence that age
played any factor in his demotion, Gross was not required to prove that he would
have retained is prior position if not for his age. Instead, the burden of proof
shifted to FBL to show that it would have taken the same action regardless of
Gross' age. Deciding that FBL failed to overcome this burden, the jury returned
a verdict for Gross and awarded him almost $47,000 in lost compensation. On
appeal to the Court of Appeals for the Eighth Circuit, the case was reversed and
remanded for a new trial. Thereafter, it was presented on appeal to the Supreme
Court, where a majority of the justices decided that the trial court incorrectly
placed the burden of proof on FBL.
The Supreme Court concluded that the burden-shifting
framework, while perhaps suitable for discrimination cases brought under Title
VII of the Civil Rights Act, was not appropriate for claims brought under the
ADEA. Under Title VII, plaintiffs may receive a so-called "mixed-motive" jury
instruction by simply offering evidence that race, color, religion, sex or
national origin was a––and not the––motivating factor. Under these
circumstances, employers must then offer evidence to show that they acted
without discriminatory intent. If they are unable to do so, the Plaintiff
receives the benefit of the doubt. The Supreme Court, however, held that cases
brought under the ADEA require plaintiffs to prove that, "but-for" an employee's
age, the employer would not have made the adverse employment decision. Simply
demonstrating age as "a motivating factor" would not be sufficient, and no
burden-shifting would take place.
The Supreme Court looked to the plain language of the ADEA
in determining that a mixed-motive analysis was inappropriate. Unlike Title VII,
which has been amended to explicitly authorize discrimination claims where an
improper consideration was "a motivating factor" for the adverse action, the
ADEA does not provide that a plaintiff may establish discrimination by showing
that age was simply a motivating factor. Moreover, Congress failed to add such a
provision to the ADEA when it amended the act several years after it was
enacted. When Congress amends one statutory provision but not another, the Court
commented, it is presumed to have acted intentionally. In addition, the 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, and not
just "a reason."
Before concluding, the Court hinted that a mixed-motive
analysis might be outdated, even for claims brought under Title VII. The Court
opined that it has become evident in recent years that a burden-shifting
framework is difficult to apply, and that notwithstanding its continued use
under Title VII, "the problems associated with its application have eliminated
any perceivable benefit to extending its framework to ADEA claims." While this
portion of the opinion is strictly dicta, it offers possible insights into
future employment discrimination claims brought under Title VII.
Gross v. FBL Financial Servs., Inc. will likely make
it much more difficult for individuals to sue employers for discrimination based
on age. In order to recover under the ADEA, plaintiffs must now demonstrate
that, if not for their age, an employer would not have made the adverse
employment decision. Simply showing that age played a role in the decision will
not suffice. Given the Court's comments about mixed-motive analyses in general,
plaintiffs may one day be held to the same standard under Title VII of the Civil
Rights Act as well. In the meantime, however, the Court's decision is limited to
claims brought under the ADEA.