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Seventh Circuit Opines on "Reasonable Factor Other Than Age" Defense to ADEA Claim Stemming from Benefit Plan Elimination

The U.S. Court of Appeals for the Seventh Circuit recently addressed whether a company’s liquidation plan violated the Age Discrimination in Employment Act (ADEA) because it caused a disparate impact on older workers. O’Brien v. Caterpillar Inc. No. 17-2956 (7th Cir. Aug. 20, 2018). The Seventh Circuit held that although the liquidation plan did statistically disfavor older workers, it did not violate the ADEA because the liquidation plan was designed to promote legitimate business purposes, namely cost-cutting measures and voluntary retirement incentives.
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