Worker `too old' to receive benefits cannot claim discrimination.

An employer who denied a worker tuition-reimbursement benefits because of his age did not violate employment discrimination laws, the California Supreme Court has ruled. (Esberg v. Union Oil Co. of California, 47 P.3d 1069 (Cal. 2002).)

The unanimous court found that a state law, the Fair Employment and Housing Act (FEHA), prohibits age discrimination in hiring, firing, suspending, and demoting but does not address doling out benefits.

"Although as individuals we may applaud plaintiff's efforts at self-improvement through education, as judges we find nothing in either statutory or common law that obliges employers to ignore an employee's age in deciding whether to fund such efforts," wrote Judge Joyce Kennard for the seven-judge panel.

Mary Dryovage, a San Francisco employment lawyer, said, "Age should not be a legitimate reason for denying an employee a job or a benefit. Educating the workforce should be a high priority. It increases employees' productivity, sense of well-being, and commitment to work."

The plaintiff, Dan Esberg, worked as a telecommunications specialist with Union Oil Co. of California starting in February 1980. In 1991, a supervisor encouraged him and other employees to obtain undergraduate degrees through Union Oil's education aid program, which reimbursed the employees for their tuition expenses.

Three years later, 56-year-old Esberg sought tuition reimbursement for a graduate degree. A supervisor denied the request, telling him, "You're too old to invest in."

Esberg sued Union Oil, alleging age discrimination in violation of the FEHA, among other claims. A jury found that Union Oil had discriminated against Esberg and awarded noneconomic and economic damages.

Union Oil appealed, arguing that its denying Esberg education-assistance benefits violated no state laws. A trial court agreed and set aside the jury's award of noneconomic damages. An appeals court affirmed.

The California Supreme Court concurred with the lower courts. State law "does not prohibit discrimination in the terms, conditions, or privileges of employment," Kennard wrote.

Steven Pingel, an employment attorney in Cerritos, California, said, "Esberg will be difficult to overcome from a literal, statutory-construction basis. The remedy is in the legislature."

A bill that was working its way through the California statehouse at press time, if approved, would protect older workers from benefits discrimination.