Court Refuses to Block Age Limits Set by Car Rental Firms

The state Supreme Court refused Wednesday to interfere with the practice of some car rental companies of refusing to rent to drivers under age 25.

The court unanimously denied review of a challenge to the practice by a man who said he was denied a rental by Hertz and offered rentals at extra charge by Budget and Alamo because of his age.

In a February ruling, the 1st District Court of Appeal said state law allows rent-a-car agencies to impose any age limits or surcharges that the market will bear and does not require them to stay within levels a judge might consider reasonable.

That ruling upheld a San Mateo County judge’s dismissal of a suit by Adam Lazar, who alleged age discrimination and unfair business practices. He sought approval for a class action on behalf of all drivers between 16 and 25.

Although California law generally forbids discrimination based on age, a 1988 law allows car rental companies to refuse service to drivers below the company’s minimum age, the appeals court said. It said the law also authorizes surcharges for young drivers without limiting the amount.

“Judicial intervention in such economic issues is inappropriate,” said the opinion by Justice Timothy Reardon.

The law is based on the companies’ conclusions that younger drivers are more likely to have accidents, said Steven Saxton, a lawyer for Hertz and Budget. He said major rental companies use either an age limit, up to 25, or a surcharge. Some companies have no restrictions.