If your organization is considering early retirement as an incentive to move out highly compensated employees, do your homework first. To properly calculate seniority, you’ll need to check how unpaid leave was handled years ago and make sure you treated all unpaid leave consistently.
For example, if in the early 1970s you subtracted unpaid from credited service but allowed those who took unpaid leave for other reasons to apply their time off to their seniority, you may run afoul of the (PDA). That may be the case even though the PDA wasn’t yet the law and even if the employee didn’t complain at the time or after the PDA became law.
Recent case: Linda Leffman sued Sprint after her position was eliminated in 2000. She had worked for Sprint since 1973, with two brief breaks to give birth. Her first unpaid maternity leave came in 1976, when she took three months off. Sprint subtracted those months from her credited service.
She had another baby in 1978, and that maternity leave time was also deducted from her service tally. When the PDA became law, Sprint credited back only her 1978 leave.
Leffman would have qualified for Sprint’s early retirement plan had the 1976 leave been added back in. She sued, alleging that the PDA required Sprint to credit all earlier leaves. Sprint said she waited too long to complain.
The 6th Circuit upheld Sprint’s pension calculation because Leffman hadn’t shown that employees who took unpaid leave back in the 1970s for nonpregnancy-related reasons had received credit for their time off. In other words, Leffman and other women who went on maternity leave hadn’t been treated worse than others had been. (Leffman v. Sprint, No. 06-3211, 6th Cir., 2007)
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/2774/audit-past-leave-credits-when-crafting-early-retirement-plan "
- Supreme Court decides Hulteen pregnancy discrimination case
- You're not a doctor! Don't restrict pregnant employee's work unless her physician says so
- Not rehiring FMLA leave-taker? Document why
- Same-sex marriage: What the trend means for employers and HR
- Record of support for pregnant women, working moms helps win discrimination cases