McKennon v. Nashville Banner Publishing Co.

Background

For about 30 years a woman worked as a secretary at a newspaper and was fired when she was 62. The paper said it was reducing staff for cost reasons, but she sued saying age was the real cause under the federal law banning age discrimination. During the lawsuit she admitted she had copied confidential financial papers and shown them to her husband. After that disclosure the company announced it would have fired her for that misconduct and the lower courts then denied her any relief.

Reasoning

The Court assumed the firing was motivated by age and that the copied documents were serious enough that discovery would have produced a lawful termination. It held that later-discovered misconduct does not automatically erase an earlier discrimination violation. Because the law aims to deter discrimination and compensate victims, courts must still recognize the discrimination but also weigh the employer’s legitimate interests. The Court ruled reinstatement and front pay are inappropriate when the employer would have lawfully fired the worker anyway. For backpay, the trial court should normally calculate pay from the date of the unlawful firing to the date the employer discovered the misconduct, while allowing consideration of other equitable factors. The employer must prove the misconduct would have led to termination.

Real world impact

The decision lets older employees who prove unlawful firing recover some backpay even if misconduct is later found. Employers can limit remedies by proving the wrongdoing was severe enough to cause dismissal. The case was sent back to lower courts to apply these rules and determine exact relief amounts, striking a balance between deterring discrimination and protecting employer prerogatives.