US Agency EEOC Files Lawsuit Against Eli Lilly Over Nationwide Age Discrimination

US Agency EEOC Files Lawsuit Against Eli Lilly Over Nationwide Age Discrimination
  • The U.S. Equal Employment Opportunity Commission (EEOC) accused Eli Lilly And Co LLY of illegally refusing to hire older workers for sales representative jobs because of their age.
  • According to the EEOC's suit, in 2017, Lilly's senior vice president for human resources and diversity recognized at a Leadership Town Hall that Lilly's workforce was composed of older workers. 
  • The senior vice president then announced goals for "Early Career" hiring to add more millennials to Lilly's workforce. 
  • After that, Lilly changed its hiring preferences and intentionally under-hired older candidates for sales representative positions in favor of younger candidates.
  • The lawsuit filed in Indianapolis federal court accused Lilly of violating the federal Age Discrimination in Employment Act.
  • Managers changed their hiring practices for sales representatives, sometimes requiring greater review and approval before extending offers to older candidates, even after some recognized that the 40% goal was illegal. The target remained through 2021, Reuters reported.
  • Lilly has reportedly denied the accusations and said it was "committed to fostering and promoting a culture of diversity and respect."
  • EEOC seeks back pay and other damages for people not hired because of their age and improve training for supervisors and managers.
  • In August, Lilly announced that human resources executive Stephen Fry would retire at the end of 2022 after more than 35 years at the company.
  • Price Action: LLY shares closed lower by 1.27% at $307.50 on Monday.

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