Google has been ordered to defend against an age-bias lawsuit by the Supreme Court of California.
The company had attempted to have the case dismissed by citing the 'stray remarks' clause.
The 'stray remarks' clause includes comments made by people who are not directly responsible for the dismissal of the employee.
The lawsuit was bought forward by ex-Google employee Brian Reid in 2004, who had claimed that senior company executives had forced him to quit his job due to his age.
He said that he was expelled from the company just before it went public as he did not "fit" into the company's culture.
Reid also cited derogatory remarks made by senior vice president for operations at Google Urs Hölzle and other co-workers.
The court ruled that the remarks made by other Google employees can be used to determine whether Reid was subjected to a hostile environment or not.
Giving its ruling, the court said: “Strict application of the stray remarks doctrine, as urged by Google, would result in a court's categorical exclusion of evidence even if the evidence was relevant.”