Michael A. Kakuk  |  March 8, 2017

Category: Labor & Employment

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Tipton - Circa November 2016: FCA Fiat Chrysler Automobiles Transmission Plant. FCA sells vehicles under the Chrysler, Dodge, and Jeep brands IA class action lawsuit filed against Fiat Chrysler Automobiles alleges that the car manufacturer systematically discriminates against older employees in violation of Michigan law.

The Fiat Chrysler age discrimination class action lawsuit states that FCA US LLC has a rating process for its employees, giving each a score of between one and nine on a yearly basis.

Those who score higher—such as an eight or nine—can be given pay bonuses and advancement. Those who score a four or below can be subject to escalating discipline, anywhere from a performance improvement program (PIP) to termination.

According to the complaint, this score is generated in a two-step process. First, employees are given an initial score by their direct supervisor. Second, those scores are “calibrated” by management either up or down.

The higher-level management force a “curve” on the company’s employee ratings. The class action argues that this forced curve “requires management to arbitrarily and subjectively rate a certain number, or percentage, of employees at scores either 5 or below, regardless of performance.”

More importantly, the class action contends that the upper management revise these employee rates using photos and employee ID numbers that act as a proxy for the employee’s time with the company. The complaint asserts that most of the upper management that perform these calibrations “do not regularly, if at all, work with the employee they are evaluating.”

The age discrimination lawsuit claims that FCA employs a “diversity manager,” whose job is to implement “a culture of diversity,” and “recruiting, developing, retaining, and promoting a diverse workforce for Defendant FCA.” As part of those duties, the diversity manager reviewed this rating system.

The class action asserts that “Defendant’s Diversity Manager observed that salaried, non-union employees ages 55 and older that were subject to the Evaluation Process were being rated with lower scores, at 5 or below, at a disproportionate and alarming rate than salaried, non-union employees under the age of 55.”

In other words, the second step of the evaluation process was apparently lowering the scores of older employees, leading to fewer advancement opportunities, lower pay, and occasionally termination for those older workers.

Plaintiff Dan Cerjanec claims that he was one of those older employees who was discriminated against by Fiat Chrysler’s evaluation system. Cerjanec states that he has a Master’s Degree in Global Finance, and was a mid-level professional with FCA.

Cerjanec was given an employee rating of five in 2014, four in 2015, and a two in 2016. In February, Cerjanec was terminated by FCA, “and escorted out of the building in front of his peers,” according to the complaint.

The class action alleges that Cerjanec is not the only employee who was discriminated against, as reported by its own diversity manager. In addition, Fiat Chrysler did not listen to its diversity manager. Instead, the complaint argues that the company “retaliated” against her by being “accused of not performing” her work and “essentially excommunicated from her colleagues and upper management.”

The age discrimination lawsuit requests certification of a Class of all salaried, non-union FCA employees who are senior managers or lower, and age 55 or older. The class action seeks compensatory damages as well as injunctive relief stopping FCA from its pattern and practice of age discrimination.

Cerjanec is represented by Shereef H. Akeel and Hasan Kaakarli of Akeel & Valentine PLC.

The Fiat Chrysler Age Discrimination Class Action Lawsuit is Dan Cerjanec v. FCA US LLC, Case No. 4:17-cv-10619, in the U.S. District Court for the Eastern District of Michigan, Southern Division.

UPDATE: On Dec. 15, 2018, a federal judge refused to compel plaintiffs to arbitrate a lawsuit alleging car manufacturer Fiat Chrysler engaged in employee age discrimination. However, the judge did require plaintiffs to amend their complaint to remove class action claims.

UPDATE 2: On Aug. 6, 2018, a judge refused to dismiss a class action lawsuit filed by current and former Fiat Chrysler employees who claim the company commits age discrimination in their employee performance reviews.

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