Liquidation of sick leave benefits upon retirement
O’Brien v Deer Park UFSD, USDC, EDNY, 127 F. Supp.2d 342
Federal District Court Judge Denis R. Hurley ruled that paying teachers who retire after age 55 less for their unused sick leave than that paid to teachers who retire before attaining age 56 as provided by the terms of an agreement negotiated pursuant to the Taylor Law violated the federal Age Discrimination in Employment Act [ADEA] and the Older Workers’ Benefit Protection Act [OWBPA].
The collective bargaining agreement provided that teachers who retired during the first year after reaching age 55 would be paid in full for all of their accumulated sick leave; those who retired later, i.e. at age 56 or older, would per paid a decreasing percentage of the full value of their sick leave credits.
The court said that under ADEA and Older Workers Benefit Protection Act, employment benefits must be equally available regardless of age.
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