Gregg Orr Auto Agrees to $325,000 Settlement in Disability and Age Discrimination Case

Background:

BIRMINGHAM, Ala. – Gregg Orr Auto Collection, Inc., a group of car dealerships based in Texarkana, Texas, has agreed to pay $325,000 and provide other relief to settle a lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC). The lawsuit alleged that the company unlawfully terminated a senior sales executive to avoid the costs associated with his healthcare following a cancer diagnosis.

Allegations:

According to the EEOC's lawsuit, Gregg Orr Auto Collection fired a 65-year-old employee in February 2020 without prior notice and immediately terminated his health insurance coverage. This action occurred shortly after the employee received bills for an expensive surgery required to treat his cancer. The EEOC alleged that the company was aware of the potential healthcare expenses under its self-insured health care plan and chose to replace the senior employee with a significantly younger worker in his mid-30s. This conduct, the EEOC claimed, was a violation of the Americans with Disabilities Act (ADA) and the Age Discrimination in Employment Act (ADEA), which protect employees from discrimination based on disability or age (40 and older).

Settlement:

To resolve the lawsuit, Gregg Orr Auto Collection has agreed to a settlement that includes a payment of $325,000 to the former employee. Additionally, the company will update its anti-discrimination policies and provide its upper management with training on disability and age discrimination to prevent future violations.

Key Takeaways:

• Gregg Orr Auto Collection allegedly terminated a senior employee to avoid high healthcare costs associated with his cancer treatment.
• The settlement includes a payment of $325,000 and commitments to update anti-discrimination policies and provide management training.
• The lawsuit highlights the protections offered by the ADA and ADEA against discrimination based on disability and age.

Conclusion:

The settlement between Gregg Orr Auto Collection and the EEOC serves as a reminder of the importance of adhering to federal laws prohibiting disability and age discrimination in the workplace. The measures agreed upon in the settlement aim to ensure fair treatment of all employees, regardless of age or health status.