Following are just a few examples of employment practices losses and
the settlements that were awarded in each case. Whether they would
be covered by insurance depends on the policy provisions and the specific
facts of the situation, but you certainly need to consider how to best
protect yourself.
Race discrimination settlement over $150,000,000
A group of African-American employees sued a company
alleging that African-American employees were denied jobs
and promotions at the company. The company agreed to settle
the race discrimination and retaliation lawsuit. According
to the settlement, the company agreed to pay damages and
pay increases over a five-year period. The company also
agreed to implement program changes throughout the company
to foster equal opportunity efforts.
Sexual harassment award $2,000,000
A female supervisor left her job because of intolerable
sexual harassment from male subordinates. The female supervisor
alleged that she was forced from her job because of the
sexual harassment. She made claims of quid-pro-quo sexual
harassment, hostile work environment harassment, and constructive
discharge. A jury found that the female supervisor had
been constructively discharged and awarded her damages
for embarrassment, humiliation and mental anguish.
Age, race and disability discrimination settlement over $15,000,000
A company purchased a division from another company.
The selling company terminated all of the division's employees,
and the acquiring company only rehired part of the division's
workforce. The employees that were not rehired sued both
companies, alleging that they were discriminated against
in violation of the Age Discrimination Employment Act (ADEA),
Title VII of the Civil Rights Act of 1964, and the Americans
With Disabilities Act (ADA). The Equal Employment Opportunity
Commission (EEOC) joined the plaintiffs in their action
against the two companies, alleging that the companies
destroyed employment records that contained relevant hiring
information. The companies reached a settlement with the
former employees and the EEOC. The settlement was designed
to compensate the former employees for back pay, other
lost earnings, and damages, including emotional distress.
Wrongful demotion award over $1,000,000
Two employees were demoted and had their salary cut. They sued their company,
alleging the company failed to follow its personnel policy when it demoted
them and cut their salaries without good cause. A jury awarded both employees
economic damages. The jury also awarded each damages for their emotional
distress.
Age discrimination award over $1,000,000
A station fired a 53-year-old personality based on
surveys that described him as not impressive and an underperformer.
The employee sued alleging the workplace reflected a corporate
atmosphere aimed at systematically ridding itself of older
employees. The employee further alleged that the station
had violated the Age Discrimination in Employment Act (ADEA).
