Is JP Morgan playing games to avoid age discrimination claims by older Bear Stearns Employees?

By Brett Sherman, The Sherman Law Firm

 

THE FOLLOWING CASE OF APPARENT JP MORGAN AGE DISCRIMINATION IS INSPIRED BY A TRUE STORY:

Jack is a 55 year old fixed income salesman who worked at Bear Stearns for years.  During the transition to JP Morgan (which began well before the sale was approved by Bear Stearns shareholders), Morgan offers Jack a retention bonus and tells him repeatedly that he wants to stay.  Jack is relieved that JP Morgan wants him, but the retention offer is very low, bordering on insulting.  And so, Jack decides to approach some of his former Bear Stearns bosses.  They tell him that they agree - the offer is low and they will put in a good word for Jack. 

JP Morgan increases the retention offer, but barely.  Jack is not happy, but after a number of "good" discussions with JP Morgan people in his department, Jack is convinced that he is truly wanted and that the work environment will be good for business.  He decides to accept the retention bonus offer so he can get on with his career.  JP Morgan gives him a retention bonus agreement that requires him to waive every claim known to mankind, including age discrimination claims.  Jack knows that he has only just begun his new life at JP Morgan and that JP Morgan certainly has not discriminated against him on the basis of age.  Jack shrugs his shoulder and signs the agreement, waivers and all.

One week later Jack arrives at work.  Larry Young, one of Jack's new JP Morgan bosses is sitting in Jack's chair.  Before Jack opens his mouth to speak, Larry opens his, "Jack, we've run the numbers and it looks like we're not gonna be able to keep you.  I'm very sorry."

When Jack can muster the strength to talk, he mumbles "What about the retention agreement, Mr. Young?"  "Oh" says Larry, "you'll get your [very small] bonus."  Under his breath, Larry adds "and you signed a full waiver and release my older friend."

Can Jack sue for age discrimination without getting tossed out of court due to the waiver he signed?  At first, Jack may be intimidated or just have little hope.  JP Morgan and Bear Stearns draft a mighty good waiver.  But a competent lawyer should see that JP Morgan and Bear Stearns just might have been playing a little game with Jack.  Just maybe all those negotiations and talks and assurances were a sham designed to make it seem like (a) there was a good faith effort to integrate Jack into JP Morgan and (b)  Jack's ultimate dismissal had nothing to do with his age.  The release, being procured by fraud, shouldn't't be a problem for Jack's competent lawyer.  Plus, any acts of discrimination that post-date the signing of the retention bonus agreement, such as JP Morgan's termination of Jack, would almost certainly be beyond the scope of the waiver and release.

Age discrimination is often a tough claim to defend for corporations like JP Morgan and Bear Stearns (to the extent an entity called Bear Stearns still exists).  If this "dramatization" of real events is any indicator, JP Morgan seems to be trying very hard to make sure it hides its age discrimination beneath layers of supposed good faith.   

By Brett D. Sherman, Esq.

 

Comments

[Michael L. Gooch, SPHR]

Inappropriate behavior and off-hand remarks will sneak up to bite you. Have you ever been blindsided by disparaging remarks made by your management team? The managers don’t realize at the time that they are in a discrimination mode. I detail these likely events in my management book, Wingtips with Spurs. Usually they will ‘get it’ when their depositions start. When you hear the following phrases, stop the offender, offer some education, and hope to goodness no one else heard them. If it happens again with the same person, it may be time to sell the cow. The courts and juries will decide if the remarks are ‘stray comments’ or direct evidence of a discrimination mindset.
• “We need sharp, young people.”
• “We need people who can come in early and stay late.”
• “They’re dinosaurs.”
• “They’re too old to learn something new”
• “We want employees who are young, lean, and mean.”
• “They wouldn’t be able to keep up with the fast company
growth.”
• “We’re looking for longevity.”
• “We need some young blood in this department.”
If a manager allows a culture that tolerates remarks such as the ones above, then the manager will probably get what he or she is asking for. The great leader will remind management on a frequent basis that they should never forget silence is often the best answer. Michael L. Gooch, SPHR http://www.michaellgooch.com

[Ron Pellegrino]

Jack has been played by his former buddies (who caved for the money & job) and the JP Morgan fine corporate managers.

I spent 30 years in the securities industry and I say that the sales dept's at the firms look much like the pharma sales depts....young.

Jack, if you are reading this, I hope you can find a lawyer with attitude to even this score.