A former Ford employee has sued the automaker, alleging that its performance- management system was used to facilitate workforce reductions and disproportionately affected older employees and workers approaching retirement milestones.
The lawsuit, filed on 28 September in the US District Court for the Eastern District of Michigan, was brought by a 57-year-old former data analyst who worked at Ford for 28 years. The complaint alleges that her termination was part of a broader workforce- reduction strategy in which performance ratings were used to create grounds for dismissing salaried employees rather than conducting formal layoffs.
The allegations have not been established in court.
According to the complaint, Ford introduced a revised performance- management framework in 2024 that included forced-ranking mechanisms and rating quotas. The former employee alleges that HR representatives directed senior leaders to ensure that salaried employees received low performance ratings, irrespective of their actual performance.
The lawsuit claims that at least 30 per cent of employees were required to receive the lowest performance ratings, while only up to 5 per cent could receive the highest ratings across specified performance measures. It also alleges that calibration exercises allowed leaders to modify ratings initially assigned by managers.
The complaint further alleges that receiving two consecutive low ratings could result in termination without the employee first being placed on a performance- improvement plan.
The former employee claims she had not previously faced disciplinary action, warnings or a performance- improvement plan. She also alleges that she was the oldest member of her team and was terminated while younger colleagues were moved into other roles.
The complaint links her termination to a retirement milestone, alleging that she was about two years away from completing 30 years of service, which would have made her eligible for additional benefits under Ford’s General Retirement Plan.
The lawsuit also raises an allegation of disability discrimination. According to the filing, the employee had received approval for intermittent leave to support her husband, who was preparing for a bone marrow transplant for leukaemia. The complaint alleges that Ford’s knowledge of her family circumstances was among the factors contributing to the termination.
The case includes claims under the Age Discrimination in Employment Act, Americans with Disabilities Act and Employee Retirement Income Security Act. The former employee is seeking reinstatement or compensation, damages and legal costs.
The lawsuit puts a spotlight on the use of performance- management systems during workforce restructuring, particularly where rating quotas, forced rankings and calibration processes are involved. However, the claims remain allegations and will have to be established through the legal process.
