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AutoZone has reached a settlement with a Massachusetts employee who claimed he was demoted after taking medical leave to address stress aggravated by age-related comments from a supervisor, according to a federal court filing.

U.S. District Judge George A. O’Toole Jr. dismissed Michael Persichini’s retaliation claims under the Family and Medical Leave Act (FMLA) and the Massachusetts Paid Family and Medical Leave Act on Wednesday after the parties informed the court Monday that a settlement had been reached. The terms of the agreement were not disclosed.

Decades of Service Marred by Workplace Conflict

Persichini, 64, filed the lawsuit in March 2023 in Massachusetts state court, which was later removed to federal court. His claims included age discrimination and retaliation, although Judge O’Toole dismissed the age discrimination allegations in July.

The veteran employee, who has worked at AutoZone for over 30 years and served as a district manager in New England since January 2005, alleged that his supervisor made repeated disparaging remarks about his age, including likening him to a dinosaur. Persichini reported the comments to an AutoZone executive in March 2021. Shortly afterward, he was placed on a performance improvement plan and demoted to a store manager role, according to court filings.

He continued to face scrutiny from his supervisor, prompting a complaint to human resources in November 2021. The following day, Persichini’s physician recommended a 30-day medical leave due to his emotional state, which AutoZone approved.

Demotion Sparks Legal Battle

Persichini alleged that upon returning from leave, his supervisor expressed concern about his age, saying he was “getting up in years,” and immediately demoted him. Despite the dispute, Persichini remains employed with AutoZone.

In July, Judge O’Toole denied AutoZone’s motion for summary judgment on the retaliation claims, noting that the timing of the demotion on the day Persichini returned from medical leave was sufficient to support causation under federal and state law. The judge, however, dismissed the age discrimination claims because Persichini had not filed a timely charge with the Massachusetts Commission Against Discrimination.

Representatives for AutoZone and Persichini did not immediately respond to requests for comment.

Legal Representation

Persichini is represented by Christopher Waterman of Waterman Employment Law Group LLC. AutoZone is represented by Laurie M. Riley and Tracy E. Kern of Jones Walker LLP, and Sean F. McDonough and Christopher C. Storm of Morrison Mahoney LLP.