Employment Practices Liability Claims Examples
A sixty-five-year-old accountant alleges that her employment was wrongfully terminated based on age discrimination. When she was fired, the company paid her six month's severance, but did not have her sign a release. She later filed suit. She alleges that her wrongful termination based on poor performance was a pretext for age discrimination because her supervisor repeatedly made age related comments in regards to how she worked, and she never received a poor review.
Outcome: Settlement and defense exceeded $75,000
A newly hired high level employee was not performing up to standards. While she was working with the company to develop a performance improvement plan for herself, she disclosed to them for the first time that she had been recently diagnosed with breast cancer. She attributed her poor performance to this upsetting development in her life. A month later she requested a medical leave for surgery and other treatment, but was fired almost immediately after making that request.
Outcome: Settlement and defense exceeded $500,000
An executive vice president hired in February 2020 alleges wrongful termination in retaliation for fulfilling his jury duty obligation a month later in March 2020. The company asserts that there were problems with his conduct and work performance immediately upon his hire, but the reason given for his termination was that it was because of financial issues caused by the COVID-19 pandemic. The defense for this claim was compromised because he was fired within a week of returning from his yet to be competed jury duty and the fact that it would be difficult to justify a COVID related cause for his termination since the pandemic was just beginning and that the company actually services the medical community.
Outcome: Settlement and defense approached $1 million
A sales associate alleges that his manager made offensive comments to him about being a terrorist, such as not to "blow up in front of other employees," or "don't blow up the place" and used other offensive stereotypes for Middle Eastern Muslims. Even though the company took action by firing the manager, the complaining party began to make petty complaints about his new manager to the point where his own conduct was disrupting the office and was fired.
Outcome: Settlement and defense exceeded $600k
Shortly after a company is told that an administrative assistant (paid well above market rates) is pregnant with complications, it hires another assistant and has the pregnant claimant train her. After the claimant trains the new employee, the company then fires the claimant. The claimant alleges that her employment was wrongfully terminated based on disability and pregnancy discrimination. She is left without insurance for her pregnancy and can't find a job that pays her anywhere near what her former employer paid her.
Outcome: Settlement and defense approached $1 million
A controller at a non-profit organization alleges wrongful termination based on pregnancy discrimination. The claimant was fired while she was on maternity leave. The organization asserts that she was fired for budgetary reasons which were caused by the claimant's own conduct. Her employer never documented any of her poor performance and a director purportedly made disparaging comments about the number of employees who recently became pregnant.
Outcome: Settlement and defense exceeded $200k.
A laborer of Sudanese descent alleges that his employment was constructively terminated after enduring constant racist comments and jokes by his coworkers and supervisors. A coworker may have even smashed his car's windshield. After complaining to management about a hostile work environment and not seeing any changes, he was forced to quit his job and later filed suit.
Outcome: A jury rendered a verdict of over $3 million against the company.
A supervisor at a non-profit organization alleges that her employment was wrongfully terminated in retaliation for complaining about a subordinate's racist comments which created a hostile work environment for her. She further alleges that when she complained to management, they did not investigate her allegations but instead told her to take care of it herself. When this only created more tension, she was fired a month later.
Outcome: Settlement and defense exceeded $250k
Four former employees at a manufacturing company filed a lawsuit against their former employer and its coworkers alleging religious discrimination as well as sexual harassment. The plaintiffs allege that their coworkers offended them with sexual comments, unwanted touching and inappropriate jokes. They also allege that the religious organization that the plaintiffs were members in, was disparaged and called a cult. The plaintiffs complained to management who did nothing about it even though the coworkers admitted to "teasing" the plaintiffs.
Outcome: Settlement and defense exceeded $1.5 million
A cashier at a store alleges that her manager forced female employees to use the public restrooms, routinely used the "n" word at work, and sexually degraded and harassed the female employees with vulgar sexist comments and improper touching. The cashier further alleges that she was fired after rejecting his sexual advances.
Outcome: Defense and settlement totaled $1 million
A company informed its employee that he was fired because of budgetary reasons. The employee alleges that the layoff was pretext and that he was really fired in retaliation for complaining about harassment based on his sexual orientation. It was further proven that his job was posted online two days before he was fired and shortly after he complained of the harassment.
Outcome: Settlement and defense exceeded $100k
A service company receives a formal complaint from an employee alleging that he was subjected to a hostile work environment and sexual orientation discrimination during his employment. The plaintiff alleges his supervisor made hostile comments about gay people. The plaintiff contends that his supervisor reduced his stock options and sales territory and was treated in a hostile manner during sales meetings. The plaintiff reported these incidents to the President, but that person refused to look into the matter and take any action. The plaintiff was constructively discharged immediately after he complained. The plaintiff alleges six causes of action: hostile work environment, discrimination based on sexual orientation, retaliation, intentional infliction of emotional distress, failure to pay commission and wages, defamation and negligent training and supervision .
Outcome: The defense and settlement of this case exceeded $300,000.
An assistant warehouse manager complained to the HR department about her manager who was continuously demeaning her by inappropriately touching her body and using vulgar, graphic and sexist comments about her. The company investigated her complaint and concluded that it was just "horseplay." Later, she alleges that she was passed over for a promotion because she previously complained about the manager while the woman who did get the promotion was also harassed by him but never complained about it. She was fired shortly after making this accusation.
Outcome: Settlement and defense exceeded $600k
Driver/personal assistant for the CEO of a company alleges that she was forced to pick up and drop off prostitutes for him. She also alleges that he pressured her into participating in sex acts with him and the prostitutes in order to keep her job. She complained to the company's HR department and quit shortly thereafter. The company later asked for the CEO's resignation.
Outcome: Settlement and defense exceeded $1 million
Seven former employees allege that a company's vice president would regularly coerced female employees into having sex with him while away at industry conventions in exchange for additional money and other work related benefits. He also allegedly threatened to fire those who would not submit. The claimants were either fired shortly after refusing his advances, or quit because of the hostile work environment his conduct created.
Outcome: Settlement and defense exceeded $3.5 million
A female employee working for a service company alleges that several employees made inappropriate sexual comments towards her, including suggestions that she was having a sexual relationship with another employee. In addition, she also alleges that her boss and co-workers asked her inappropriate questions concerning her personal life. The plaintiff alleges that after she complained, her manager engaged in a practice of retaliation. She contends that she was excluded from certain meetings, taken off certain projects and assignments, treated rudely and received a negative evaluation.
Outcome: The parties participated in non-binding arbitration and consented to a settlement of $250,000.
The plaintiff alleges that she had her employment terminated because she testified on behalf of another worker who brought a separate action against the company. Plaintiff alleges that this is a violation of her employment contract which provides that she can only be terminated for good cause. Plaintiff asserts causes of action for wrongful termination, breach of contract and retaliation.
Outcome: Total defense and settlement exceeded $120,000.
Two former employees of a chamber of commerce allege that they were bullied, subjected to a hostile work environment, and eventually fired in retaliation for testifying in support of a prior coworker’s claim of sexual harassment against their employer.
Outcome: Total defense and settlement exceeded $700k.
Executives of a company receive documentation from an employee that provides details on the company’s non-compliance with the Food and Drug Administration (FDA) regulations. The plaintiff alleges that he was improperly terminated because they notified the company executives that FDA regulations were being violated. The plaintiff asserts that the company fabricated allegations regarding their “misconduct” and “deficient performance” and used the false allegations as pretext for termination.
Outcome: This claim is currently being defended.
An executive of a manufacturing company files suit against the company for wrongful termination and intentional infliction of emotional distress. The plaintiff, a former Chief Operating Officer, makes statements that the company improperly failed to pay an employee overtime and terminated the employee for filing a complaint. The plaintiff alleges that although the company advised him that his termination was due to performance problems, he was actually terminated in retaliation for his honest statements he made in connection with a fellow employee's termination.
Outcome: Total defense costs and settlement exceeded $750,000.
An employee is fired two hours after he informed his supervisor that he was just involved in a car accident and would not be able to report to work and perform his job. The employee was informed that he was being fired because of a slow down in business. The claimant filed a charge against the company with the EEOC. The claimant asserts that the explanation of his termination was false and he was terminated because of his national origin and his disability. The complaint was comprised of two causes of action for wrongful termination in violation of public policy and state code; and discrimination.
Outcome: Although this matter settled out of court, the defense cost and settlement payments exceeded $25,000.
The plaintiff alleges that her prior company has taken steps to damage her reputation and improperly interfered with her ability to obtain other employment. In particular the plaintiff alleges that the company spoke with several competitors and disclosed the reasons for her termination. The complaint is comprised of several causes of action including: tortuous interference; defamation and wrongful interference with the plaintiffs’ livelihood and reputation; and violation of privacy.
Outcome: The plaintiff agreed to settle out of court for $125,000 and defense costs exceeded $25,000.
In a cross-complaint a doctor alleges a breach of his employment agreement. Specifically, he alleges that the company failed to provide him an adequate patient load, office space, the support staff needed to perform his job duties and failed to pay wages. The doctor asserts causes of action for breach of contract, misrepresentation, unfair competition and failure to pay wages.
Outcome: Total defense costs and settlement exceeded $350,000.
An employee is given a percentage of the partnership in an effort to convince him to stay with the company. Subsequently, the employee demands for a distribution of the partnership’s profits and is told that there are no profits. The employee then asks for a bonus based on his partnership shares and is told since he does not share in the “financial risk” that he is not entitled to a bonus. The employee asserts causes of action for: (1) intentional misrepresentation; and (2) tortuous breach of the covenant of good faith and fair dealing.
Outcome: Total defense costs and settlement exceeded $750,000.
Husband and wife founders/employees of a medical device company allege breach of their employment contracts in being fired without cause. It was alleged that in a Series “B” Stock Offering two investors were given board representation. These two new board members were extremely aggressive and demanding which drove out long standing board members and senior management. They eventually removed both claimants from the board and later terminated their employment.
Outcome: Though the amounts owed under their employment contracts were not covered, the defense costs exceeded $2.5 million.
The EEOC filed a class action lawsuit against a company that is alleged to have violated federal civil rights laws by refusing to hire otherwise qualified applicants for outside sales positions because they were female or over the age of 40. The EEOC further alleged that the company engaged in an intentional pattern of systemic hiring discrimination that resulted in no one over 40 or female being hired for seventy new sales representative jobs in a three year span.
Outcome: Settlement exceeded $1 million along with non monetary relief consisting of EEOC monitoring for four years, revised hiring practices and extensive training for all employees involved in the hiring process.
An employee of a small publishing company filed a charge with the EEOC against her former employer. The claimant alleges that she resigned from her position as office manager because the company engaged in illegal employment practices which made her work environment intolerable. She alleges that the company refused to hire or even consider males for the receptionist position. The claimant also alleges that the owner made degrading comments to a male employee that sat at the receptionist’s desk. The claimant alleges she has been discriminated against on the basis of her gender.
Outcome: Although the parties settled out of court, the total cost of this claim was in excess of $100,000.
The Department of Homeland Security (DHS) along with the Immigration & Customs Enforcement (ICE) allege that a dry cleaning company failed to properly complete and/or timely prepare or present DHS Employment Verification Forms I-9 for 500 current and former employees as part of an on-site audit. Defense costs were incurred in contesting the fine and getting it reduced.
Outcome: Defense costs were $15,000
An employee sexually groped his coworker to the point where she could barely get away from him after the two employees drank excessively while attending an industry function. The next day she complained to management about the incident and that she no longer felt comfortable having their work stations adjacent to each other. Management didn’t take her allegations seriously and only informally reprimanded the alleged harasser.
Outcome: Settlement and defense exceeded $100k.
Waitress alleges that after she ended a sexual relationship with her manager, he began to harass her and tried to intimidate her into continuing the relationship. When she refused, she received less favorable working hours and was eventually fired.
Outcome: Defense and indemnity exceeded $100k
A warehouse worker alleged that she was sexually harassed and assaulted by three successive supervisors. The first supervisor allegedly required her to submit to sexual conduct with him during work hours. When she complained to management, the company fired the supervisor and had her report to the perpetrator’s brother. This new supervisor blamed her for his brother’s termination and sexually assaulted her. Claimant filed criminal charges against the brother who later fled the country. She then was assigned to a third supervisor who allegedly blamed her for the first supervisor’s termination and so treated her poorly.
Outcome: Settlement and defense exceeded $2.5 million.