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Goodyear Ends Its Employee Rating System as Lawsuit is Filed

Goodyear Tire & Rubber Co. recently abandoned its employee performance rating system, just as a class-action age discrimination lawsuit regarding the system was filed. The so-called “ABC” evaluation system rates the performance of employees on a curve, grading the top 10% with an “A,” the middle 80% with a “B,” and the bottom 10% with a “C.” Typically, employees falling in the bottom 10% are not eligible for raises or bonuses and some are warned they might lose their job.The lawsuit alleges the workers who got “C” ratings were targeted because they were older and were humiliated and stigmatized among their peers and managers. As discovery progresses, the plaintiff’s hope to show that a disproportionate number of older workers were fired or denied raises during the time the system was in place.

In March, Ford Motor Company quit handing out “C’s” to its bottom 10% and paid $10.6 million to settle an age discrimination suit filed over a similar rating system. AARP has pledged to provide legal resources to those suing Goodyear.

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