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Earlier this month, an employer learned the hard way that it could not rely on a contract provision to greenlight discrimination.
For several years, a school district limited the annual earnings increases of teachers over age 45 to avoid a pension-contribution surcharge.
Why?
Because its collective bargaining agreement with the teachers union allowed it to do so. And this seemingly caught the attention of the U.S. Equal Employment Opportunity Commission, which filed a lawsuit to challenge the CBA provision limiting the salary increases of teachers within ten years of retirement eligibility (age 55) to no more than 6%
