Shocking $1.8M Age Discrimination Verdict

Lesson Learned: A recent court case from Ohio serves as a major wake-up call, particularly for small business owners in Pennsylvania. In this case, a 65-year-old employee won a $1.8 million verdict after being terminated under questionable circumstances.

Here’s the plot twist: In Pennsylvania, employers with just four or more employees are subject to some of the strictest anti-discrimination laws in the country. That means even small teams need to take age discrimination seriously.

What Happened: Cheryl Shephard was a senior accountant with strong reviews and no history of discipline. In 2022, her employer hired a 29-year-old accounting manager. Soon after, Shephard’s responsibilities were reassigned to this younger hire. A month later, she was let go and told her position was being eliminated due to a “new business model.”

After she filed a lawsuit, the company changed its story, claiming that she was let go due to performance issues. Making matters worse, internal comments surfaced that leadership wanted to get “younger and hungrier.” The jury sided with Shephard.

The result: $545,000 in compensatory damages, $1.25 million in punitive damages, Plus attorney’s fees, and the verdict was upheld on appeal.

Warning to Small Business Owners: These kinds of verdicts, while rare, are becoming more common. Even if your company never faces a lawsuit, the risk to your reputation, operations, and finances is a real concern.

Pennsylvania law doesn’t offer many exceptions. Unlike federal law, which only applies to 15 or 20 employees, the Pennsylvania Human Relations Act applies once you have just four employees. That means you can be held liable for age discrimination even if you're a small team

Stay Compliant: 

1. Be Consistent. If you’re eliminating a position, don’t later claim it was about performance. Inconsistent explanations are a legal red flag.

2. Document as You Go. If there’s a performance issue, document it when it happens, not after the fact. Post-termination paper trails rarely hold up.

3. Watch Your Words. Phrases like “younger and hungrier” may sound motivational, but they can be used as evidence of discrimination.

4. Eliminate the Job, Not the Person. A true reduction in force (RIF) means eliminating the work, not just handing it to someone younger.

5. Use Extra Caution with Long-Tenured Staff. Sudden terminations of strong performers can feel suspicious. Jurors notice… so do regulators.

Final Thoughts: Just because your business is small doesn’t mean you’re off the hook for compliance. In Pennsylvania, age discrimination laws apply to nearly every employer. If you’re making tough decisions involving employees over 40 or any protected class, it’s smart to pause and get expert advice before acting.

One questionable termination can cost more than a full year’s revenue. Don’t take that chance.