EEOC Proposed Rulemaking on ADEA

In an update courtesy of David Arnold, ATP General Counsel, the Equal Employment Opportunity Commission (EEOC) has issued a notice of proposed rulemaking to address issues related to the United States Supreme Court's decision in Smith v. City of Jackson. The Court ruled that disparate impact claims are cognizable under the Age Discrimination in Employment Act (ADEA) but that liability is precluded when the impact is attributable to a reasonable factor other than age. Current EEOC regulations interpret the ADEA as prohibiting an employment practice that has a disparate impact on individuals within the protected age group unless it is justified as a business necessity. EEOC is proposing a change in rules to accommodate this Court ruling.