That was the phrase executives at CrossCountry Mortgage allegedly used to describe the kind of people they wanted in their accounting department.
The only problem? They already had Cheryl Shephard, a senior accountant who wasn't "younger." Shephard was 65. And a CPA. No disciplinary record. No PIP. Just years of reliable, quality work with strong performance reviews
Then, out of the blue, CrossCounty Mortage fired her in a so-called reduction in force.
The reason it gave? First, it was that her position was eliminated. Later, it was that her performance was subpar. Neither held up in court. Especially when all her job duties were reassigned to a 29-year-old accounting manager and the company kept hiring younger employees—many under 40—into newly created roles in the same department. In fact, Shephard was the only person in the accounting department terminated during that RIF.
A jury didn't buy it either. It awarded Shephard $544,997 in compensatory damages and $1.25 million in punitive damages. With attorneys' fees added in, and even after a small reduction in the verdict to account for statutory damage caps, she ended up with a nearly $2.5 million judgment, which Cuyahoga County Court of Appeals just affirmed.
The only problem? They already had Cheryl Shephard, a senior accountant who wasn't "younger." Shephard was 65. And a CPA. No disciplinary record. No PIP. Just years of reliable, quality work with strong performance reviews
Then, out of the blue, CrossCounty Mortage fired her in a so-called reduction in force.
The reason it gave? First, it was that her position was eliminated. Later, it was that her performance was subpar. Neither held up in court. Especially when all her job duties were reassigned to a 29-year-old accounting manager and the company kept hiring younger employees—many under 40—into newly created roles in the same department. In fact, Shephard was the only person in the accounting department terminated during that RIF.
A jury didn't buy it either. It awarded Shephard $544,997 in compensatory damages and $1.25 million in punitive damages. With attorneys' fees added in, and even after a small reduction in the verdict to account for statutory damage caps, she ended up with a nearly $2.5 million judgment, which Cuyahoga County Court of Appeals just affirmed.
Shephard put forth evidence at trial that she was not a low performer as she had above-average reviews from [her manager], she was doing her work as she had been instructed, she was never reprimanded for any mistakes she made and was never put on any performance plans by HR. She put forth evidence that management stated they wanted "younger and hungrier" people in accounting and that significantly younger people were hired in the accounting department. Shephard also put forth evidence that, despite alleging the need to cut costs because of higher interest rates in March 2022, the accounting department hired several new people from March 2022 to June 2022 that added $345,000 in annual salaries. Lastly, despite alleging her position was eliminated, her three main job duties were not stopped, but instead were taken over [another employee]. She also put forth evidence that CCM had a job posting for a senior accountant II, Shephard's position at CCM, from April 2022 until the position was filled.
The case is a textbook example of how stray remarks can become smoking guns. "Younger and hungrier" wasn't just ageist fluff—it was the foundation for a 7-figure verdict.
Want to avoid a similar result? A few quick takeaways for employers:
1. Age discrimination isn't always overt, and is often hidden behind buzzwords such as "culture" or "energy."
2. Performance concerns need contemporaneous documentation. Vague claims don't hold up.
3. Don't say "RIF" if it's really just a reshuffling—and certainly not if the only person let go in a department is your oldest team member.
This one was expensive. And completely avoidable.