Best Week, Worst Week: Baltimore County pensioners cash in; Under Armour employees get cashed out

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Pensioners in Baltimore County received great news this week – to go with some more money, eventually — via the U.S. 4th Circuit Court of Appeals while Under Armour’s ongoing campaign to regain its swagger will end up costing 680 employees their jobs.

Legal affairs writer Heather Cobun reported Wednesday the federal appeals court ruled Baltimore County owes more than a decade of back pay to older employees who contributed to the county pension plan at a higher rate.

The county has been in litigation with the Equal Employment Opportunity Commission for years over the higher contribution rates for employees 40 and older. The EEOC first issued notices of charges of age discrimination in 1999 and 2000 but did not pursue the case until 2006, when it issued a letter determining discrimination occurred and filed suit the following year. A U.S. District Judge granted partial summary judgment on liability in 2012, which the 4th U.S. Circuit Court of Appeals affirmed in 2014.

The parties and unions involved approved a plan for gradual equalization of contribution rates in 2016, but the EEOC pursued retroactive and prospective damages for the unequal rates paid until they were equalized. A federal judge denied that request in 2016, and the EEOC appealed.

The 4th Circuit held in a published per curium opinion Wednesday that the Age Discrimination in Employment Act requires mandatory back pay upon a finding of liability because the law incorporates the remedy provisions of the Fair Labor Standards Act.

The case has now been remanded to U.S. District Court for a determination of the amount of back pay owed.

Meanwhile, nearly 5 percent of Under Armour’s workforce will have ended up losing their jobs as the Baltimore athletic apparel maker continues its now two-year process of reassessing its operations.

Business writer Adam Bednar reported Thursday Under Armour is cutting 3 percent of its overall workforce, or about 400 employees. Its operating loss for the year is expected to be approximately $160 million, which came in at top end of the $130 million to $160 million range the company has projected previously.

In response to recent struggles, the company has cut jobs, reshuffled management and restructured operations. Under Armour has reduced the number of products it sells, streamlined distribution and backed off pursuit of high-profile endorsement deals.

In August 2017, amid the company’s first prolonged slump after years of growth, CEO Kevin Plank announced a restructuring plan to get the brand he founded back on track. That included slashing 280 jobs, roughly 2 percent of its workforce at the time.

Under Armour’s stock price increased again at the start of August, but took a dive after Dick’s Sporting Goods partly blamed the athletic apparel and footwear maker for weak second-quarter sales. The sporting goods retailer faulted Under Armour for expanding the sale of its products at discount retailers, such as Kohls.

Though the latest round of layoffs aren’t a particular worry now, analysts don’t think Under Armour is out of the woods just yet.

Third-quarter earnings are reported next month, and analysts see the next earnings call as a key factor in determining if Under Armour’s revitalization plan is still on schedule. October’s numbers will be an important indicator of how the company is faring going into the all-important fourth quarter, which includes the holiday season spending surge.