Dealing with Increased Risk of Retaliation

May 23rd, 2011

Fears related to the effects of a down economy on retaliation claims have been proven well-founded. Statistics released by the U.S. Equal Employment Opportunity Commission (EEOC) reveal that the number of retaliation claims between 2000 and 2009 jumped an astounding 55 percent. They currently account for 36 percent of all EEOC charges, which is the highest percent ever – and many legal experts predict it will grow as federal laws make suing for retaliatory charges easier. A major contributing factor in this rise seems to be the persistent, high unemployment rate.

Data regarding median settlements and awards involving retaliation claims is lacking, but individual cases point to a high risk of financial severity for companies. Worse, the burden of proof in a retaliation claim is considered lower than in the initial charge of discrimination, meaning that a previous discrimination charge that was dismissed could still hold weight in a new claim.

To mitigate risk, employers should train managers and supervisors about the adverse actions that could constitute retaliation. When faced with a claim of employment-related discrimination or harassment, companies should conduct internal investigations and communicate the company’s stance on employee retaliation.

EMPLOYMENT RELATED PRACTICES LIABILITY COVERAGE insurance is used to protect against lawsuits by employees alleging wrongful termination, discrimination, harassment, or other specified employment related exposures.

WORKPLACE VIOLENCE INSURANCE coverage is used to protect against expenses that may arise from an incidence of workplace violence., Workplace violence can include any physical form or action intended to or resulting in physical or mental harm to employees while at their place of work.

Employment Related Practices Liability and/or Workplace Violence coverage,can help protect your business in the event of a discrimination, harassment or workplace violence occurs. Please contact Whitaker-Myers Insurance Group @ 330-345-5000 to discuss your coverage options with your Account Executive.