Opinion ID: 70350
Heading Depth: 2
Heading Rank: 2

Heading: Lack of Additional Consideration for ADEA-Protected Employees

Text: 29 The plaintiffs also argue that the Plan's requirement of ADEA waiver constitutes disparate treatment under the ADEA, 29 U.S.C. Sec. 623(a)(1), because ADEA-protected employees received no additional consideration for waiving their ADEA claims, which younger workers lack. The employees rely exclusively on Dibiase v. SmithKline Beecham Corp., 847 F.Supp. 341 (E.D.Pa.1994), which held that a plan that required a general release in exchange for enhanced benefits discriminated against ADEA-protected workers because it did not provide ADEA-protected workers with additional consideration. Id. at 348. Since the parties filed their briefs in this case, the Third Circuit has reversed the Eastern District of Pennsylvania. DiBiase v. SmithKline Beecham Corp., 48 F.3d 719 (3d Cir.1995). 30 The Third Circuit concluded that a plan that conditioned enhanced benefits on the execution of releases, but provided no additional consideration to ADEA-protected workers, did not violate the ADEA. Id. The court reasoned that such a plan is not facially discriminatory, because the plan itself does not distinguish between older and younger workers; rather, the ADEA makes that distinction. Id. at 727. Furthermore, the fact that the employer required older employees to waive ADEA rights, as well as other rights, did not constitute disparate treatment. That an older employee has a right, the court reasoned, does not necessarily mean that the older employee has a claim. Therefore, older workers may or may not be waiving more valuable rights than younger workers. Id. at 728-29. 31 We find the Third Circuit's reasoning persuasive and therefore reject the plaintiffs' contention that the Plan violates the ADEA.