Ledbetter Act Revives Pension Accrual Age Discrimination Claim

In 2004, Wayne Tomlinson and other employees brought a class action against their employer, El Paso Corp., for age discrimination caused by changes made to accrual rules when the company switched from a defined benefit plan to a cash balance plan in 1997. Tomlinson alleged that the company selectively froze the pension benefits of workers 40 and older. He alleges that he didn't know enough about the changes to file his action until 2004.

The action was originally dismissed in January of this year as untimely, but plaintiffs' attorneys filed a motion to reconsider after the Ledbetter Act was signed into law. According to the Denver Post, Tomlinson was one of the invitees to the signing.

Late last week, according to BNA's Daily Labor Report (sorry, paid subscription only), the district court reinstated the action, finding that the Ledbetter Act made the action timely. This may be the first application to a pension case, so stay tuned for more developments. And to read more about the case, see this site created by the attorneys for the class to collect relevant documents and news.

Hat tip: PS

MM