EEOC sues Texas carrier over driver age limits

The federal lawsuit, filed September 24 in the U.S. District Court for the Southern District of Texas in McAllen, accuses the Pharr-based company of violating the Age Discrimination in Employment Act. The ADEA prohibits employment discrimination against people 40 and older, and the EEOC says an insurer's age rules cannot be used as a hiring filter.

According to the complaint, Trancasa restricted hiring under eligibility standards tied to a commercial liability insurance policy purchased in 2023. Drivers had to be between 23 and 65. Those under 25 or over 60 with any violations or accidents in the prior three years were ineligible, and drivers 63 to 65 had to submit a long-form medical exam report, Form MCSA-5875, that younger drivers were not asked for.

The case centers on Gilbert Cerda, a 64-year-old driver with more than 20 years of experience and a clean record. He applied in November 2023 and was told his application needed insurer review because of his age. Weeks later, the recruiter told him the insurer had determined he could not be hired because of his age. The EEOC says multiple applicants over 60 were rejected under the same standards since at least June 2023.

Acting EEOC Dallas regional attorney Ronald L. Phillips said employers cannot discriminate by claiming a contract with another party, such as an insurer, requires it. The EEOC's position is blunt: both parties to such an agreement risk litigation and liability.

The agency also notes that federal law does not require trucking companies to obtain the long-form medical examination report from drivers. Trancasa operates 171 power units and employs 198 drivers, running about 18.8 million miles in 2025, with operations across the U.S., Mexico, and Canada.

The EEOC is seeking back pay, front pay, and liquidated damages for Cerda and other affected applicants, plus a permanent injunction requiring equal-opportunity hiring policies. The agency issued a reasonable-cause finding in March and tried to settle through conciliation before suing. The allegations have not been adjudicated and no damages have been awarded.

For older drivers, the case is worth watching well beyond one Texas carrier. If the EEOC prevails, insurers' driver age caps could face challenges across the industry. Drivers who suspect age played a role in a hiring decision can file a charge with the EEOC, which enforces the ADEA nationwide.

Carriers, meanwhile, are on notice that adopting an insurer's age restrictions as company hiring policy carries legal risk. The EEOC's Dallas office, which covers much of Texas and parts of southern New Mexico, brought the case after its own investigation. Industry groups will be watching whether the court treats insurance underwriting standards as a legitimate business reason or as unlawful discrimination.

Trancasa and its former insurers did not respond to requests for comment as of publication, according to the reporting. The case number is 7:26-cv-00457. Further proceedings will determine whether the company's practices violated federal law.