AT&T settled a lawsuit from a U.S. agency that accused it of age discrimination for its refusal to rehire tens of thousands of employees that had retired from the company, Reuters reports.
In August 2009, the U.S. Equal Employment Opportunity Commission filed a lawsuit against AT&T which accused the company of prohibiting former workers who retired through the company's 1998 and 2001 retirement programs, as well as a retirement program affiliated with SBC Communications in 2005 which the company acquired.
AT&T spokesman Marty Richter said in a statement that his company is adhering to the request of the EEOC.
"While we had a disagreement with the EEOC over the application of the law in this case, we are pleased to have amicably resolved that dispute," he said.
When a company is at fault for discrimination and faces penalties, business insurance can insure costly losses, but the recovery from a damaged reputation depends fully on the company itself.
U.S. District Judge J. Paul Oetken stated the new policies will lift the ban of retired employees from becoming re-qualified for AT&T.