How To Protect Yourself from Employee Lawsuits – Part 1

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The Equal Employment Opportunity Commission (EEOC) received 143 harassment or discrimination lawsuits in 2023, according to the Society for Human Resource Management (SHRM). As American employees become more aware of their legal rights, workplace lawsuit filings continue to rise, highlighting the importance of fair and lawful workplace practices. Read about how to protect your organization from employee lawsuits, and find out how an Arizona business lawyer from Harrison Law, PLLC can help businesses overcome their employment-related legal issues by calling (480) 320-2310.

What Are Some Common Workplace Lawsuits?

Workplace lawsuits are legal claims based on employment-related issues. Below are several examples of common workplace lawsuits brought by employees.

Wage and Hour Disputes

Unpaid wages, overtime, misclassification, and minimum wage violations are common issues in these disputes. Often, these lawsuits concern the employer violating the protections offered to employees under the Fair Labor Standards Act (FLSA).

Discrimination

Employees may feel unfairly treated based on protected characteristics like race, age, or disability. These claims could relate to hiring decisions, promotions, or hostile work environments. The following is an outline of the federal and state discrimination protections, alongside the conditions for bringing an employee lawsuit and some tips for avoiding these claims.

Federal Protections

Under federal law, employers cannot terminate employees or mistreat them based on certain characteristics. These include the following:

  • Sex (including sexual orientation, gender identity, or pregnancy)
  • RaceHarrison Law - How To Protect Yourself from Employee Lawsuits
  • Color
  • National origin
  • Age
  • Disability
  • Religion
  • Veteran status
  • Pregnancy
  • Citizenship
  • Familial status
  • Genetic information

State Protections

State laws also protect several classes, varying between states, from unfair treatment. Example classes include sexual orientation and marital status.

Claim Conditions and Avoidance Tips

In the absence of direct evidence, like a written statement by an employer stating that a particular employee lost their job because of a protected characteristic, the employee must prove four things to bring a claim based on discrimination. These conditions are as follows:

  • The employee must be a protected class member.
  • The employee possesses the qualifications to perform their job duties and is doing this satisfactorily.
  • The employee suffered an adverse action, like a promotion denial or termination.
  • This action came about due to the employee’s protected class membership.

Suppose a court determines the claimant has fulfilled the preceding requirements. In that case, the employer must then prove, by records and other documentation, that the adverse action was the result of legitimate business reasons. Avoiding discrimination lawsuits is possible by following these tips:

  • Maintain an awareness of discrimination laws.
  • Ensure that all business protocols, policies, and procedures are thoroughly and accurately documented and available to all employees.
  • Be sure to always document and keep records of employee reviews, poor performance, and tardiness.

Harassment

These workplace claims can involve various issues like sexual harassment or hostile behavior based on protected traits. Employers can prevent these employee lawsuits from arising by cultivating a safe work environment.

Wrongful Termination

When an employer dismisses an employee illegally, this can lead to a lawsuit. To fight these claims, employers may have to present evidence of misconduct to justify the termination.

Personal Injury

Ill or injured workers typically file a workers’ compensation claim; in certain circumstances, however, they can also initiate a personal injury lawsuit. Workers’ compensation laws usually cover medical costs and lost wages. But in a personal injury claim, workers injured on the job may also be able to claim pain and suffering for their workplace injury and loss of future earnings.

In 2021, according to the Bureau of Labor Statistics (BLS), employers reported 2.6 million non-fatal workplace injuries and illnesses. To reduce the risk of these types of lawsuits, consider these tips:

  • Maintain a safe working environment by monitoring for safety hazards and addressing any as soon as they arise.
  • Conduct comprehensive employee training, including during onboarding, to reduce the risk of workplace accidents.
  • Make sure you keep up-to-date training records for all employees, as this helps firms quickly identify workers who need to retrain or renew their safety certifications.

Family and Medical Leave Act (FMLA) Violations

These legal claims relate to employers interfering with an individual’s right to take a leave of absence from work due to family or medical reasons. Alternatively, they can entail an employer retaliating against the employee for taking this time off work.

Retaliation

Retaliation lawsuits happen when employees claim they have received punishment or unfair treatment after engaging in protected activities. For example, the employee could have reported discrimination or harassment in the workplace.

Americans with Disabilities Act (ADA) Violations

ADA violation lawsuits typically involve allegations of an employer failing to offer appropriate accommodations for an employee with a disability. Other forms of discrimination against workers on the basis of their disability may also result in these individuals bringing a claim against the organization for breaching the ADA.

Whistleblower Claims

A whistleblower lawsuit might arise if an employee faces retaliation for performing certain actions. Example actions include reporting hazardous working conditions and illegal activities.

Breach of Contract

Employees may bring a contractual breach lawsuit against their employer if the organization violated the employment agreement’s terms. For instance, if the hiring organization did not give the individual agreed-upon benefits or wages or terminated the worker without a valid reason when the agreement contained a clause prohibiting this action.

Which Industries Had the Most Employee Lawsuits?

In 2023, many discrimination filings concerned disabilities. Per the SHRM, the EEOC published new guidance in January 2023 regarding hearing-related disabilities, leading to a twofold increase in workplace lawsuits, particularly against small businesses. During this period, the following industries received the most legal claims from the EEOC:

  • Hospitality, such as holiday resorts
  • Health care, including small medical practices
  • Retail, like pet and appliance stores
  • Construction/natural resources
  • Transportation/logistics, such as used car dealerships

What Are Some Legal Remedies for Workplace Lawsuits?

In workplace lawsuits, various legal remedies are available to employees who have suffered from unlawful actions by their employers. Here are some common legal remedies typically sought in claims concerning workplace disputes:

  • Back pay: This refers to compensation for lost wages, bonuses, or benefits due to actions like discrimination, wrongful termination, or wage and hour violations.
  • Front pay: Compensation for future lost wages and benefits, for when reinstatement is not possible, is front pay.
  • Reinstatement: This involves returning the employee to their previous or equivalent position if they were wrongfully terminated or demoted.
  • Compensatory damages: Compensation for emotional distress, pain, suffering, or damage to reputation caused by the employer’s actions are compensatory damages.
  • Punitive damages: These are monetary awards designed to punish the employer for severe conduct and deter similar actions in the future. However, the availability and limits of punitive damages depend on the court’s discretion.
  • Injunctive relief: Injunctive relief is a court order requiring the employer to take specific actions, such as providing reasonable accommodations or ceasing discriminatory practices.

Contact an Arizona Business Lawyer Today

The basis of legal claims from employees ranges widely, such as discriminatory promotion denials and unfair terminations protected by federal and state laws or unpaid wages. By implementing several protection methods, employers can stop workplace conflicts from escalating and prevent potential employee claims. Learn more about the methods of protecting against employee lawsuits and consider contacting an experienced Arizona attorney by calling Harrison Law, PLLC at (480) 320-2310.

For additional information on how a business can avoid a workplace lawsuit click HERE.

© 2024 Matthew W. Harrison and Harrison Law, PLLC All Rights Reserved

This website and article have been prepared by Harrison Law, PLLC for informational purposes only and does not, and is not intended to, constitute legal or financial advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice from an attorney licensed in your jurisdiction.

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