Honeywell International has agreed to pay $2.15 million to settle a class-action lawsuit alleging violations of the Age Discrimination in Employment Act of 1967 (ADEA) at a company it acquired during a 1999 merger.
The Equal Employment Opportunity Commission’s suit alleged that Allied Signal Automotive Aftermarket, during a company wide reorganization in 1997, either terminated or demoted a class of sales managers and representatives because of their age. The lawsuit alleged younger workers with less experience were retained and/or offered those positions.
In the consent decree resolving the lawsuit, Honeywell denies any wrongdoing. Honeywell and the EEOC say they entered into the agreement in order to avoid the time, expense, and uncertainty of further litigation. Honeywell agrees to provide a total of $2,150,000 to resolve the lawsuit.
In addition, it agrees to post a notice concerning the lawsuit at appropriate facilities and to provide training in the provisions of the ADEA to all the managers and supervisors in the Consumer Products Group (CPG) and Frictions Materials (FM) businesses. The term of the decree is approximately two years.
“We hail the willingness of all the parties to work together to craft a thorough and effective resolution to this lawsuit,” says Jacqueline McNair, regional attorney of EEOC’s Philadelphia office. “While a substantial amount of money will flow to those who stepped forward and filed charges with the commission as well as to others affected by the pattern of alleged age discrimination, the training required by the consent decree is also noteworthy as it will benefit all Honeywell employees in the CPG and FM businesses.”