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From the EEOC: Allen Theatres to Pay $250,000 to Settle EEOC Age Discrimination Lawsuit

By Steve Davis

Allen Theatres to Pay $250,000 to Settle EEOC Age Discrimination Lawsuit

ALBUQUERQUE, N.M. – Allen Theatres, Inc., a regional movie theater chain operating in New Mexico, Arizona, and Colorado, has agreed to pay $250,000 to resolve a lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today. The suit alleged violations of the Age Discrimination in Employment Act (ADEA) related to the treatment of older employees.

According to the EEOC’s complaint, Allen Theatres’ president compelled Abby Parrish—a theater manager in Clovis, New Me

xico with 31 years of service—to retire in September 2020 due to his age (73). The company subsequently denied Parrish the opportunity to return to work when theaters reopened in March 2021 following COVID-related closures.

The EEOC further alleged that Allen Theatres implemented a discriminatory compensation policy that discontinued family health insurance coverage for employees over the age of 65, under the assumption that Medicare eligibility rendered such coverage unnecessary. This policy allegedly affected a class of employees age 65 and older, including Charles Green, the company’s Director of IT based in Las Cruces, New Mexico, resulting in reduced compensation for those employees.

Such practices are prohibited under the ADEA, which protects individuals aged 40 and older from employment discrimination based on age. The EEOC filed the lawsuit in the U.S. District Court for the District of New Mexico (Civil Action No. 1:24-cv-00965-KWR-KK).

Under the terms of the two-year consent decree, Allen Theatres will:

Provide $250,000 in monetary relief to Parrish and other affected individuals.
Extend health insurance benefits under the company’s health plan to all current employees aged 65 and older who are not already enrolled.
Revise company policies to expressly prohibit age-based discrimination and retaliation.
Implement comprehensive training and procedures to address and prevent age discrimination.
Submit regular reports to the EEOC regarding policy updates, employee complaints, and training activities.
Statements from the EEOC

“The EEOC commends Allen Theatres for its cooperation in reaching an early resolution,” said Mary Jo O’Neill, Regional Attorney for the EEOC’s Phoenix District Office. “Employers must not impose arbitrary retirement decisions based on age. Workers who are qualified, capable, and performing well deserve the right to continue working, regardless of their age.”

Melinda Caraballo, District Director of the Phoenix District Office, added, “Age should never be a factor in determining an employee’s access to benefits or continued employment. Training and policy enforcement are critical to ensuring that all workers are treated equitably.”

Statements from Class Members

Class member Charles Green expressed appreciation for the EEOC’s efforts: “I’m grateful to the EEOC for the time and work invested in this case, and I sincerely appreciate being included in the resolution.”

Abby Parrish also shared his perspective: “When I was told I had to retire, I knew it wasn’t right. I’m thankful to the EEOC team in Albuquerque, especially Mary Jo, for advocating on our behalf and achieving a positive outcome.”

For more information about age discrimination in the workplace, visit the EEOC’s website at www.eeoc.gov/age-discrimination.