Firm Chairman John M. Callagy told the New York Law Journal the decision was made last month. The revelation comes the same week Kelley Drye responded to the EEOC suit, which was brought on behalf of 79-year-old partner Eugene D’Ablemont back in January,
The suit contended the firm’s policy of stripping equity from partners when they turn 70 was age discrimination. The firm contended equity partners are actually employers and not employees and thus not covered by age discrimination law.
According to the firm’s new policy, senior partners will be allowed to continue past 70 and will judged only on performance. Callagy explained the move to the NYLJ.
“We did it for various reasons,” he said. “It doesn’t serve our business interests anymore. And the EEOC wanted us to do it. We told them we would do it, we told them before the lawsuit we would do it.”
According to the report, it isn’t yet known what, if any, affect the policy change will have on the pending suit.