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Scheels accused of age discrimination in federal lawsuit
The EEOC says Scheels forced workers 40 and older to sell company stock while younger employees kept shares, and seeks back pay and policy changes.
On Wednesday, Sept. 30, the Equal Employment Opportunity Commission filed a civil suit in Nevada's U.S. District Court, accusing the Fargo-based sports retailer Scheels of age discrimination regarding its Employee Stock Ownership Plan.
Scheels amended its policy in 2014 to require employees at least 40 years old to sell company shares if they worked fewer than 1,000 hours annually, while allowing younger workers to retain their stock.
Former employee Jeri Fulgham was "constructively discharged" in February 2022 after being told to sell her shares, which were worth nearly $430,000 in 2021, according to the complaint.
The EEOC asks a judge to force Scheels to rescind the policy and provide back pay, with EEOC San Francisco District Director Christopher Green stating employers cannot use stereotypes to disadvantage older workers.
With more than 30 stores in 16 states, Scheels faces allegations that other workers were also forced to sell their shares due to their age, according to the lawsuit.