Chapter 2, Problem 2.169ACA

Age discrimination study. The Age Discrimination in Employment Act mandates that workers 40 years of age or older be treated without regard to age in all phases of employment (hiring, promotions, firing, etc.). Age discrimination cases are of two types: disparate treatment and disparate impact. In the former, the issue is whether workers have been intentionally discriminated against. In the latter, the issue is whether employment practices adversely affect the protected class (i.e., workers 40 and over) even though no such effect was intended by the employer. A small computer manufacturer laid off 10 of its 20 software engineers. The ages of all engineers at the time of the layoff are shown below. Analyze the data to determine whether the company may be vulnerable to a disparate impact claim.