In its third such settlement this year, 3M Co. has agreed to pay a total of $3 million to settle an age-discrimination lawsuit with approximately 290 former 3M employees. In reaching the settlement, however, 3M refused to admit any liability, claiming that it did not act improperly but decided to settle to save the time and expense of a trial.

The U.S. Equal Employment Opportunity Commission (EEOC) filed the discrimination lawsuit against the company on behalf of the former employees, all of whom claim that they were laid off in violation of the Age Discrimination Employment Act. In the suit, the EEOC claimed that 3M laid off several hundred employees who were over the age of 45 between July 2003 and December 2006. 3M is charged with laying off older employees with higher salaries and promoting younger employees in their place.

According to 3M spokeswoman Donna Runyon, the settlement does not constitute an admission of liability. "3M denies the allegations in the suit," she said. "We believe our human resource practices are fair, comply with federal and state laws, and are widely recognized as best in class."

This is the third time this year that 3M has had to defend against claims that it had violated the Age Discrimination in Employment Act, which prohibits employment discrimination against workers over the age of 40. In the first, 3M paid $12 million to settle with nearly 7,000 current and former employees, and in the second, which was filed in California, 3M reached an undisclosed settlement with employees.

Source: Star Tribune, "3M will pay $3 million to settle age-bias suit," Jackie Crosby, Aug. 22, 2011