Urbana School District No. 116 Agrees to $206,301 Settlement in EEOC Age Discrimination Case

Background:

CHICAGO – Urbana School District No. 116 has agreed to a settlement of $206,301 following an age discrimination lawsuit initiated by the U.S. Equal Employment Opportunity Commission (EEOC). The settlement follows a court ruling that found the district limited compensation of teachers based on their age.

Allegations:

According to the EEOC’s lawsuit, Urbana School District No. 116 engaged in discriminatory practices by limiting the salary increases of Charles Koplinski and other teachers over the age of 45 due to a provision in the collective bargaining agreement between the school district and the Urbana Education Association IEA-NEA. This agreement was influenced by an Illinois state pension code, which stipulates that if a teacher's final average salary includes a year with a salary increase of over 6%, the school district must contribute to the Teacher’s Retirement System to cover the increased pension costs. The EEOC challenged a specific provision in the collective bargaining agreement that restricted salary increases for teachers within 10 years of retirement eligibility to no more than 6% above their previous year's salary, thus discriminating against older teachers.

The EEOC argued that this provision of the collective bargaining agreement violated the Age Discrimination in Employment Act (ADEA), which protects individuals aged 40 and over from age-based discrimination, including in compensation matters. The lawsuit was filed in the U.S. District Court for the Central District of Illinois, Urbana Division (Case No. 18-cv-02212), following unsuccessful pre-litigation settlement attempts through the EEOC’s conciliation process.

Settlement:

On November 7, 2023, the district court granted summary judgment in favor of the EEOC, ruling that the collective bargaining agreement provision unlawfully limited compensation for teachers aged 45 and older due to their age. The court ordered the district to pay lost wages to a group of 32 affected teachers whose compensation was restricted by this provision. Additionally, the EEOC sought further lost wages for other teachers not covered by the summary judgment decision, which would have required determination through a trial.

To avoid a trial on additional damages, the parties reached a settlement providing monetary relief to 40 teachers who experienced wage losses between 2015 and 2020 due to the discriminatory provision. The district and union subsequently revised the collective bargaining agreement, removing the discriminatory clause starting from the 2020-21 school year.

Conclusion:

The court approved a consent decree on April 17, 2024, concluding the litigation. The decree includes provisions for lost wages to 40 affected teachers and enjoins the district from limiting salary increases based on age in the future. It also prohibits retaliation against individuals involved in the case or those who have complained about age discrimination. Furthermore, the decree mandates training for district personnel involved in collective bargaining, the posting of a notice regarding the lawsuit's resolution, and periodic reporting to the EEOC.