Scripps-Affiliated Docs Pay $6.8M to Settle Age Bias Suit

Scripps Clinical Medical Group says their now-rescinded mandatory retirement age for surgeons complied with California law.

A physicians group affiliated with San Diego-based Scripps Health will pay $6.8 million to resolve a federal age and disability discrimination suit filed with the U.S. Equal Employment Opportunity Commission.

The settlement for violating the federal Age Discrimination in Employment Act and the Americans with Disabilities Act stems from a 2014 mandatory retirement policy enacted by Scripps Clinical Medical Group for physicians ages 75 or older.

SCMC admitted no liability in the settlement, which the group says it accepted to avoid a costly, lengthy legal battle, and issued the following statement:

"In 2014, SCMG enacted a mandatory retirement policy, which impacted physicians age 75 or older. This policy went into effect in 2016, and was entirely consistent with California law, which specifically allows for mandatory retirement of physicians in medical groups at age 70 (Cal. Code Regs. Tit. 2, § 11084)."

"This policy was put in place to enhance patient safety. Thereafter, the EEOC took the position that this policy, while such a policy is expressly legal under California law, it is not allowed under federal law.  As a result, SCMG rescinded the policy in 2018, and the policy has not been in place or utilized for over five years. SCMG recently settled with the EEOC, without any admission of fault or wrongdoing, to avoid the continued expense and distraction of litigation."

The physicians group's four-year conciliation agreement with the EEOC includes a $6.8 million payout to the surgeons affected by the retirement mandate, which Scripps rescinded in 2018. Scripps will also inform employees of the recission and clarify that the company does not have any policy in which age is a factor in making employment decisions, including termination, retirement, and terms and conditions of employment, EEOC said in a media release.

SCMG will also review and revise if necessary its policies against age and disability discrimination, and require training on the subject for division managers and other leaders.

"With demographics showing that many people are remaining in the workforce longer, it is critical for employers to understand the ADEA's protections for older workers," EEOC Chair Charlotte A. Burrows says. "For that reason, the Commission has included discrimination against older workers among the priorities identified in its new Strategic Enforcement Plan."