Settlement in Age Discrimination Suit May Affect CPA Firms

Source: Partner’s Report

The firm of Sidley & Austin has agreed to a settlement with plaintiffs in a suit challenging the firm’s right to force partners over age 40 to retire. The firm has acknowledged that the partners were, in effect, employees, and therefore the firm’s action constituted age discrimination. The 32 former partners will receive an average of $859,000 each.

Because of this settlement, CPA firms should examine their equal employment opportunity practices.

For details of the lawsuit, see the following articles, which appeared in previous issues of CPA Leadership Report:

Review Your Partnership Agreement to Make Sure Your Partners are Not Employees August 2005

Discrimination Against Partners May 2005

From Partner’s Report—the Monthly Update for CPA Firm Owners, December 2007, p. 3, Partner Retirement. For subscription information contact Institute of Management & Administration, Inc., 3 Park Avenue, 30th Floor, New York, NY 10016-5902. One-year subscription $449. 212-244-0360, [email protected].