Was Age Bias Behind Trader Joe’s “Reorganization”?

A class-action lawsuit alleges that Trader Joe’s implemented a company-wide “reorganization” plan last year to drive out older workers.

According to the complaint,  a company-wide reorganization by Trader Joe’s, the grocery store chain for affluent yuppies, resulted in the systematic demotion of employees over the age of 45 in violation of the U.S. Age Discrimination in Employment Act.

The suit was brought by Keith Garlough, 49, an eight-year veteran employee of a California Trade Joe’s store, who was demoted from the position of “merchant,” which is one rung below assistant store manager,  to an entry-level crew position.  He states he suffered an $8.50 per hour loss in pay, a reduction in hours and was no longer eligible for bonuses and overtime pay. He also incurred greater health insurance costs and received fewer health benefits, less vacation and leave pay, and diminished retirement contributions.

I note in my new book, Betrayed: The Legalization of Age Discrimination in the Workplace, that it is a common practice  for employers to use the device of a “restructuring” or “business reorganization” to eliminate or demote older workers. There hasn’t been much litigation over the practice because age discrimination is treated like a second-class offense in U.S. federal courts.  If these cases aren’t immediately dismissed, federal judges permit employers to avoid accountability by dragging out these cases for years. In one major case at least two older workers died  while their age discrimination case was permitted to languish for ten years until it was dismissed!

In addition to the ADEA, the complaint alleges Trader Joe’s  company-wide policy violated the California Fair Employment and Housing Act and California’s competition law.

The case is Garlough v. Trader Jos’s Co., # 3:15-cv-01278 and was filed in U.S. District Court for the Northern District of California.

Trader Joe’s has more than 200 stores in Arizona, California, Connecticut, Delaware, Illinois, Indiana, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania, Virginia and Washington.

Comments

  1. Age discrimination is still alive and well at Trader Joe’s only to be out paced by reversed sexual discrimination.
    I have worked for Trader Joe’s for 26 years and should be ashamed of themselves. I hope the judge trows the book at them.

    • elle burnertt says:

      Hi, I worked for TJ’s for 3 years. I was severely injured. I was cut out of treatment 7 weeks after I fell unconscious to the pavement instigated by eroded sidewalk and shatering the ligaments of my foot… I would like to find other TRADER JOE’S CREW MEMBERS who have suffered Injury on the Job and are getting the Run Around from the Gallagher Bassett “FOR PROFIT’ Insurance Services. Not getting necessary treatment in a timely fashion, approvals for Dr.s in a timely fashion, delays on surgeries, etc.
      The Insurance industry doesn’t make money Paying Claims”… Please FB at ElleB Burnett.

  2. Perceived discrimination also at the candidate application level:
    If you are thinking about working at Trader Joe, good luck. My 40 year old husband with College Associate degree and three completed professional apprentice certificates, 4 years pharmaceutical school (no degree), bilingual (not Spanish), clean appearance with no tattoos or piercings, and get this, 10 years experience in food and beverage industry as waiter, grocery store worker and caterer, with clean background just received a letter from a manager who interviewed him, declining employment.
    I work in HR and have seen Trader Joe’s hire the very same people whom I have fired in my company for drugs, fraud, and various other gross misconduct reasons. These are usually white, U.S. born, and under 40. Also observed very young men & women with likely no professional experience and in college, very confusing. I found this online so I am not surprised: https://www.law360.com/articles/633400/trader-joe-s-hit-with-age-discrimination-class-action
    Trader Joe’s executive management should seriously review their hiring manager’s dispositions of qualified candidates to ensure fair employment practices – please … .

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