Fighting for Fair Treatment: A Closer Look at the AAA Age Discrimination Case

Imagine dedicating decades of your life to a company, climbing the ranks through hard work, building a loyal client base and consistently earning top performance awards, only to find yourself abruptly terminated. Age discrimination remains an issue in workplaces across California, where older workers are often unfairly targeted due to their age. Such discriminatory treatment not only undermines the value of seasoned workers but also violates their legal rights.

A recent case against the American Automobile Association of Northern California, Nevada & Utah (AAA) illustrates the challenges older workers face and the importance of holding employers accountable for discriminatory practices. Several former AAA agents filed a lawsuit alleging age discrimination in the Superior Court of California, County of Contra Costa.

A celebration turned sour for Alvaro Perez, who was recognized for his 20 years of exemplary employment at AAA’s Sacramento office just weeks before his termination. Perez became one of the plaintiffs in the lawsuit. It accused AAA of systematically targeting and wrongfully terminating older insurance agents to cut costs.

According to the complaint, AAA had a longstanding pattern of terminating older workers while treating younger agents more favorably. The lawsuit described Perez and nine other plaintiffs in the case as loyal and successful commissioned insurance agents. Managers and supervisors had consistently given them positive performance reviews. However, under the decade-long leadership of CEO Tim Condon, the company began to treat employees over age 40 differently.

The complaint alleged that Condon made comments about older AAA insurance agents making “too much money” and said that he was “going to manage them out.” Money appeared to be the key motivation for age discrimination, with the earnings of agents over 40 at AAA correlating to their ages.

All the plaintiffs in the lawsuit were long-time employees of AAA, consistently recognized as top performers and members of the company’s “Circle of Excellence.” They had hundreds of clients between them.

Each plaintiff made high earnings based mainly on a large portfolio, known as a book, of loyal clients they had built throughout their AAA careers. By terminating these seasoned workers, AAA could transfer their client lists to younger, lower-paid employees, effectively cutting costs at the expense of fair employment practices.

Celia Solorio, another plaintiff, had dedicated 40 years to AAA. She worked her way up from file clerk to eventually an agent at the Daly City branch. Solorio, 60, had numerous awards for her service and sales, amassing an extensive book of business. She expressed her frustration at being allegedly wrongfully terminated, “after giving AAA more than half my life and building my book of business from scratch.”

Age discrimination in the workplace sometimes manifests as policies that disproportionately affect older employees.

Age discrimination in the workplace sometimes manifests as policies that disproportionately affect older employees. The plaintiffs hope their lawsuit will urge AAA to create and enforce policies that protect workers from unlawful discrimination, harassment and retaliation. They are also seeking compensatory damages and punitive damages.

The California Fair Employment and Housing Act (FEHA) prohibits employers from discriminating against employees who are 40 years of age or older. The law covers all aspects of employment, including hiring, promotions, job assignments, pay and terminations. Additionally, employers are required to prevent harassment and retaliation against employees who assert their rights under FEHA. The law ensures that older employees are judged based on their abilities and performance rather than their age, promoting a fair and equitable work environment.

Employers should foster workplaces where employees of all ages are valued and protected from unfair treatment. If you believe you have been subjected to age discrimination at work, it is crucial to seek legal advice to understand your rights and options. While Erlich Law Firm is not involved with the AAA lawsuit, our experienced Oakland employment lawyers are here to help with your employment dispute. Contact us today for a free initial consultation.