Allen Theatres, based in Las Cruces and operating 17 cinemas across New Mexico, Arizona, and Colorado, is facing a lawsuit from the Equal Employment Opportunity Commission EEOC on behalf of Abby Parrish, a former theatre manager at the North Plains 7 movie theatre in Clovis.
In a federal complaint, the EEOC claims that Parrish, a 30-year employee, was “mandatorily retired in 2021 due to his age. The lawsuit alleges that the company has a policy of terminating health insurance coverage for employees upon reaching age 65, which violates federal laws against age discrimination.
The EEOC stated that previous attempts to settle the matter with Allen Theatres’ president, Russell Allen, were unsuccessful.
During the first year of the COVID-19 pandemic in 2020, all Allen Theatres locations in New Mexico were closed due to emergency public health orders. The complaint details that while most employees were laid off in September of that year, Parrish was informed he would be retired because he was 72 years old. When theatres reopened in 2021, the company recalled all laid-off theatre managers except for Parrish.
According to the complaint, Russell Allen acknowledged in interviews that Parrish, who had been with the Clovis location since 1991, was qualified for his position. However, Allen justified the decision to end Parrish’s employment by expressing the belief that Parrish, at his age, would not prefer working night shifts. Allen also claimed he believed his decision was lawful. Parrish was replaced by a 30-year-old with significantly less experience.
The EEOC also alleges that Allen Theatres has a policy of terminating health insurance for employees at age 65, a situation Parrish experienced in 2012. After being dropped from the company’s insurance plan, he enrolled in Medicare, which provided less coverage. He requested a pay increase to help with out-of-pocket medical costs, but his request was denied. The EEOC argues that denying health coverage to older employees is a form of discrimination that results in them receiving lower compensation than younger colleagues.
A company cannot implement a policy that entirely cuts off medical benefits for employees when they turn 65, stated EEOC attorney Mary Jo O’Neill. This policy results in employees aged 65 and over receiving fewer benefits than younger employees. Additionally, forcing a well-qualified employee, who was satisfactorily performing his job, to retire involuntarily due to a paternalistic belief about working at age 72 is unacceptable.
Russell Allen did not respond to requests for comment on the case.
The lawsuit seeks back pay, lost benefits, and future earnings with interest, as well as an injunction to prevent Allen Theatres from engaging in age-based discrimination in hiring, firing, and employee compensation.