$103 Million Verdict Against Liberty Mutual Puts Spotlight on Age Discrimination in California Workplaces

Unlawful treatment in the workplace often starts quietly. One day, a routine performance review contains unexpected criticism. Meetings begin to feel isolating. Then small changes turn into major decisions that affect employment. By the time a worker is terminated, patterns over months or years may reveal whether discrimination was at play.

This scenario was central to a lawsuit against Liberty Mutual Insurance Co., where a California jury found the company engaged in age discrimination. The verdict totaled $103 million and examined how the company treated older employees over time, including decisions that affected benefits, recognition and daily work interactions.

The plaintiff had worked as a case manager at Liberty Mutual for over three decades. She alleged that conditions at work began to change following the arrival of a new regional claims manager. Over the next several years, she claimed that older employees were treated differently. Workers in their 50s and 60s were allegedly pushed to resign, and those over the age of 40 were either fired or pressured to quit.

The lawsuit also described actions directed specifically at the plaintiff. She alleged that teamwide issues were blamed on her performance. She was also ignored in day-to-day interactions and singled out during meetings. After decades of consistent evaluations, her review said, “needs improvement,” the first negative feedback of her career. Later that year, she won an award for handling a major client’s claim, but the regional manager allegedly implied her success was due to luck rather than skill.

At one point, her blood pressure worsened, which her doctor attributed to workplace stress due to a hostile work environment. The plaintiff then took approved short-term leave. Upon returning to work, she had to use a visitor pass because her badge didn’t work anymore. She was terminated immediately during a meeting, without explanation, and later replaced by a worker in his 20s.

A lawsuit was then filed alleging wrongful termination and violations of California’s Fair Employment and Housing Act (FEHA). After a trial, a jury found that Liberty Mutual had engaged in unlawful age discrimination. It awarded $103 million in damages, including $83 million in punitive damages.

FEHA protects California workers age 40 or older from age discrimination. This includes decisions about hiring, firing, promotions, assignments, evaluations and other terms of employment. The law also protects workers from retaliation for exercising rights under FEHA, such as taking approved medical leave or raising concerns about discrimination.

Age discrimination doesn’t need to be obvious. Evidence often comes from patterns of treatment over time rather than a single comment or incident. Sudden negative reviews after years of strong performance, exclusion from meetings or opportunities, and replacement by substantially younger employees are all examples that can support a claim.

FEHA also addresses harassment, which can include repeated criticism, dismissive comments or conduct that creates a hostile work environment. Courts consider the overall context, as well as the frequency and effect of such behavior on the employee’s ability to perform their job.

One important thing to note is that not every difficult workplace experience is unlawful. Employers may make various business decisions or restructure teams. The law becomes relevant when these actions are influenced by age-based assumptions rather than legitimate reasons.

Recognizing warning signs can help workers respond proactively. Being singled out, sudden changes in treatment, facing unexpected criticism after a leadership change or being replaced by much younger employees are examples of situations that may justify seeking guidance on legal rights.

If you believe you are experiencing age discrimination, retaliation or unfair treatment at work, the San Francisco employment lawyers at McCormack Law Firm are here to help. We hold employers accountable and help workers resolve workplace disputes. Contact us today for a free initial consultation.

Disclaimer: This article is for information purposes only. McCormack Law Firm is not involved in this case.