Examples:

• • Michelle was a general manager for 13 years but fired at 61 for a minor cash register discrepancy after Bowlero took over.
  • Donald had a 36-year spotless record as district manager but was abruptly let go at 56 when Bowlero acquired his center, replaced by 2 women in their early 30s.
  • When Joanne’s center became a “Bowlero” at 63, she was told she was “not a good fit” anymore and terminated after 41 years.
  • Though a top performer for 33 years, Rick was put on a sham “Performance Improvement Plan” and fired at 56 shortly after Bowlero’s purchase, under a CEO known for evaluating candidates’ appearances to fit a “young, hip” image​
  • Bob’s “final warning” for a policy he never violated in 25 years was used as pretext to fire the 58-year-old and replace him with a 28-year-old.

Legal Standards:

• • The Age Discrimination in Employment Act (ADEA) prohibits discrimination against workers 40 or older in hiring, firing, layoffs, promotions, pay and benefits.
  • An employer violates the ADEA if age is the “but for” reason behind an adverse action, even if other factors also played a role.
  • Employees can prove age discrimination through direct evidence (e.g. ageist comments) or circumstantial evidence showing age bias was the likely reason.
  • ADEA retaliation bans punishing workers for complaining of age discrimination or participating in related investigations or lawsuits.
  • For an ADEA violation, employees can recover lost pay/benefits, liquidated damages, attorneys’ fees, equitable relief and more.

Facts & Stats:

• • 87% Manager Turnover Rate: Data analysis shows Bowlero terminated 87% of all managers 40+ within 1 year of acquiring new centers, replacing them with younger workers.
  • Over 7,000 Impacted Employees: Estimates suggest the discriminatory policy harmed 7,000+ Bowlero workers in the protected age class in recent years.
  • Revenue vs. Penalties: Bowlero made $500M+ transforming old alleys into youthful magnets, dwarfing potential ADEA liabilities it likely sees as a cost of business.
  • Low EEOC Claims Rate: Though rampant discrimination alleged, most terminated older workers didn’t realize they had ADEA claims and missed filing deadlines.
  • Significant Demand: The lawsuit against Bowlero demands $94M+, a significant amount, though not the largest in ADEA litigation history. The highest known award is from Arnett v. California Public Employees’ Retirement System, which resulted in a $250 million judgment, underscoring the severe financial implications of age discrimination under the ADEA.

Examples:

• • The EEOC found Bowlero’s claim it fired Mary for a cash violation “pretext” as she had no prior discipline in 34 years before the takeover.
  • Joseph was told at 53 he was “fat, lazy” and to leave before being fired for a lock-out policy he knew would cause no injury after 26 good years.
  • The complaint alleges Bowlero created an “objectively intolerable working environment” for 62-year-old Jeff through “constant pressure” and “unfounded criticism”, forcing him to resign, which the EEOC determined was a constructive discharge based on age as part of a company-wide pattern of age discrimination.
  • The EEOC determined Stefan’s stellar record proved Bowlero’s rationale for firing the 45-year-old was a pretext for age discrimination, as part of a company-wide pattern of discharging employees over 40 years old.
  • Despite clear age bias evidence, Bowlero gave the EEOC the runaround with delays, objections and bad faith in conciliation.

Charge Processing Intel:

• • Employees file ADEA charges with the EEOC first, which has 180 days to investigate (may extend to allow for employer responses and interviews).
  • The EEOC issues a “reasonable cause” finding if it believes illegal age discrimination occurred based on the evidence.
  • Before employees can sue, the EEOC must attempt to settle the dispute via conciliation – a confidential, voluntary negotiation process.
  • If conciliation fails, the EEOC can sue the employer directly or more commonly issue a “Right to Sue” letter to the employee to file in court.
  • Employees have 90 days from receiving the notice to file an ADEA lawsuit or lose their right to pursue the matter in court.

By the Numbers: EEOC Resolutions

• • ADEA Charges Per Year: The EEOC received 12,996 age discrimination charges in 2022, 12,965 in 2021 and 14,183 in 2020.
  • Merit Resolutions: 17.6% of 2021 ADEA charges had outcomes favorable to the employee – “reasonable cause” finding, settlement or withdrawal with benefits.
  • Monetary Recovery: Through the charge process, the EEOC recovered $84.4M for ADEA claimants in 2021 ($38.9M in benefits, rest in damages).
  • Lawsuits Filed: The EEOC filed 7 ADEA lawsuits against employers in 2022, 10 in 2021 and 14 in 2020. Most suits are class actions.
  • Case Resolutions: In 2021, the EEOC resolved 10 ADEA suits and recovered $15.4M in damages. The EEOC did not report how many ADEA cases ended in consent decrees in FY 2021. In FY 2022, 6 out of 7 ADEA resolutions involved consent decrees.

Financial Outlook: What’s At Stake

• • Bowlero reported revenue of $911.7M and net income of $11.8M in FY 2022. Comps grew 27.5% from acquisitions and existing center sales.
  • The company ended Q2 2023 with cash of $138.3M and total debt of $892.5M, most of which is tied to real estate. Debt payments are $18M/year.
  • Average payouts in class ADEA cases (10+ plaintiffs) are $87,500 per claimant, vs. $32,000 in single cases. For 7,000 plaintiffs, that totals $612.5M.
  • Jury awards for willful ADEA violations are doubled. If liability is $100M and doubled to $200M, that’s 22% of Bowlero’s annual revenue or nearly 17x its net income.
  • Legal fees, lost productivity, and negative PR would compound direct award costs. Experts estimate business disruption costs at an additional 10-20% on top of payouts.

Market Parallels & Precursors:

• • In 2002, Sprint settled an ADEA collective action brought by 1,700 employees for $57 million. While large, this was not one of the first major age bias class suits.
  • 3M agreed to a $3 million settlement in 2011 to resolve EEOC charges that it had unlawfully laid off hundreds of employees over the age of 45 between July 1, 2003, and December 31, 2006.
  • Texas Roadhouse paid $12 million in 2017 to settle an EEOC suit.

Business Risks & Ramifications

• • Lost Talent: Mass firings of veteran staff erases decades of institutional knowledge, client relationships & operational know-how Bowlero can’t easily replace.
  • Hiring Challenges: Recruiting strong candidates may get tougher if Bowlero gets an industry reputation as a toxic or ageist workplace.
  • Customer Backlash: A generation that grew up bowling could boycott Bowlero for pushing out the familiar faces who made their experience fun for flashy youngsters.
  • Corporate Client Concerns: Risk-averse companies may think twice before booking holiday parties or team building events with an alleged lawbreaker.
  • Industry Blowback: Fellow owners may distance themselves from Bowlero to avoid guilt by association at trade shows and events.

Issue in the Spotlight: Layoffs & Age Bias

• • During downturns, employers often target seasoned, higher-paid staff for layoffs on the pretext of cost cutting or role elimination.
  • A 2021 AARP survey found 78% of workers 40-65 saw or experienced age discrimination at work, up from 61% in 2018.
  • IBM is defending ADEA suits alleging it schemed to replace up to 100,000 older staff with younger, cheaper millennials in the 2010s.
  • Experts say blatantly illegal age bias in layoffs is widespread, more common and actionable than people realize, and surging amid tech & finance cuts.

Reforming the Law: ADEA Proposals

• • The ADEA is narrower than Title VII race bias law. Its causation bar is higher, damages are capped, no disparate impact claims.
  • POWADA would let workers sue if age was a motivating factor in a firing, not the sole cause. But it’s stalled in Congress since 2009.
  • The Transparency in Employment Act would outlaw age-specific job ads and applicant “digital native” type queries. It’s also languished for years.
  • Bills to allow compensatory/punitive ADEA damages to fully remedy age bias have been proposed since the ’90s but never passed.
  • The EEOC and worker advocates continue to push for ADEA reforms as the workforce ages and the problem mushrooms.

Fighting Bias: Best Practice Tips

• • Document Everything: Maintain detailed records of job duties, praise, achievements & communications to help prove if adverse actions were unwarranted.
  • Report Concerns In Writing: Notify HR or supervisors of suspected age bias or harassment in emails or memos. Insist on a written investigation.
  • Check Severance Deals Carefully: Have counsel review any waiver of age claims. You have 21 days to consider, 7 to revoke after signing.
  • Don’t Miss Deadlines: You must file an EEOC charge within 180 days of the discriminatory act, 300 in some states (Google yours).
  • Tap Key Resources: Consult the EEOC, Labor Department, AARP and an employee-side attorney early for guidance on your rights and options.

Questions: Case Basics & Allegations

1. What does Bowlero’s business model transformation have to do with the age bias lawsuit?
   • A) Nothing, they are completely unrelated
   • B) The rebrand to attract younger patrons also involved pushing out older staff
   • C) Turning bowling alleys into entertainment centers created tons of jobs for all ages
   • D) Bowlero promoted older workers to oversee the shift in clientele
2. How many individual plaintiffs are named in the Bowlero ADEA complaint so far?
   • A) 25
   • B) 47
   • C) 75
   • D) 102
3. What illegal tactic does the lawsuit say Bowlero used to get rid of older staff?
   • A) Buyout offers workers couldn’t refuse
   • B) A secret algorithm that screened them out
   • C) “Managing out” longtime employees via sudden writeups & coercion
   • D) A hiring freeze on anyone over 40
4. Which type of worker does the complaint say was most targeted for termination?
   • A) Bartenders
   • B) Mechanics
   • C) Customer-facing roles like managers
   • D) Back office finance staff
5. About how many Bowlero employees over 40 were harmed by the alleged scheme?
   • A) 100-200
   • B) 500-1,000
   • C) 2,000-4,000
   • D) Over 7,000

Answers: Case Basics & Allegations

1. B) The lawsuit alleges Bowlero’s business model shift to trendy entertainment centers aimed at young patrons also involved systematically terminating older workers to get a younger-looking staff.
2. C) The Bowlero age discrimination complaint currently lists 75 named plaintiffs from 18 states who are suing the company.
3. C) Bowlero allegedly used a “manage out” strategy of sudden discipline, coercion and pretextual job eliminations to push out older workers.
4. C) The lawsuit says age bias was most prevalent in customer-facing roles like managers, as Bowlero wanted younger staff interacting with patrons at rebranded centers.
5. D) Based on the 87% turnover rate for older managers and other data, experts estimate the discriminatory policy harmed over 7,000 Bowlero workers over 40.

Questions: EEOC Findings & Legal Fallout

1. What has the EEOC found in all the plaintiff charges it’s ruled on so far?
   • A) Reasonable cause to believe age discrimination occurred
   • B) No probable cause for an ADEA violation
   • C) A need for further investigation before deciding
   • D) The charges were untimely and could not be considered
2. Which of these is NOT a reason the EEOC gave for finding the discrimination intentional?
   • A) Explicit ageist comments by executives
   • B) Sham writeups and PIPs for older workers only
   • C) Data showing 87% of older managers terminated post-acquisition
   • D) Bowlero’s statement disavowing any age bias
3. What did the EEOC say about Bowlero’s excuses for the older worker firings?
   • A) They were highly credible and likely true
   • B) More information was needed to assess them
   • C) They were pretextual and disproven by the evidence
   • D) The EEOC has not commented on Bowlero’s defenses
4. How did Bowlero respond to the EEOC’s invitation to conciliate the charges?
   • A) It participated in good faith and reached a settlement
   • B) It engaged in limited discussions but no resolution
   • C) It completely “rebuffed” the conciliation process
   • D) It asked for more time to consider conciliation
5. What is the most common outcome of EEOC-filed ADEA lawsuits against employers?
   • A) Verdict for the defendant after trial
   • B) Verdict for the plaintiff after trial
   • C) Dismissal on summary judgment before trial
   • D) Consent decree reached in settlement

Answers: EEOC Findings & Legal Fallout

1. A) In the 57 charges decided so far, the EEOC has found reasonable cause in 100% of them – an overwhelming ratio suggesting strong evidence of company-wide age bias.
2. D) While the EEOC cited ageist executive remarks, targeted discipline and statistical proof of bias, Bowlero’s denial of wrongdoing did not factor into its merit assessment.
3. C) The EEOC rejected Bowlero’s “legitimate” reasons for the older worker terminations like performance or restructuring as pretextual and contradicted by evidence.
4. C) Per the complaint, Bowlero completely “rebuffed” the EEOC’s offer to conciliate the age bias charges, reflecting an unwillingness to admit fault or settle.
5. D) Historically, when the EEOC is forced to sue employers itself under the ADEA, the most frequent resolution is a consent decree where the company agrees to settle and reform its practices.

Disclaimer

This article is for general informational and educational purposes only. It does not constitute legal advice and does not create an attorney-client relationship. The specific facts and circumstances of your matter may change the analysis and outcome discussed here.

This analysis is based on the most current publicly available information about the Bowlero lawsuit at the time of publication, but case specifics are fluid and subject to change. Consult a licensed employment lawyer in your state for advice tailored to your potential age discrimination matter.