MINNEAPOLIS - The Wells School District will pay $98,000 to 12 teachers as part of a settlement in an age discrimination lawsuit, the U.S. Equal Employment Opportunity Commission announced Tuesday.
The EEOC, in suing the district, alleged the district's early retirement incentive plan for teachers violated the federal Age Discrimination in Employment Act.
From at least June 1998 through at least 2000, the district in far southern Minnesota provided retiring employees a cash incentive for stepping down early, then reduced that benefit based on the employee's age, the EEOC said. As a result, certain teachers who retired during that time before they were 65 years-old received fewer benefits than younger retirees with comparable years of service.
The settlement gives the 12 teachers the benefit they should have received when age is removed from the equation, plus interest. The district also agreed it won't implement early retirement incentive plans in which benefits are reduced based on the recipients' age, the EEOC said.
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