EPLI Claims Examples
Pregnancy Discrimination:
- The employee, returning from maternity leave, alleges wrongful termination due to pregnancy-related complications. Despite providing a doctor’s note for her absence, the company terminated her employment. This case highlights the legal obligations of employers to provide reasonable accommodations for pregnant employees under anti-discrimination laws such as the Pregnancy Discrimination Act (PDA). The substantial settlement and defense costs underscore the seriousness of the allegations and the potential liability for employers in such cases.
Disability Discrimination:
- In this case, a manager alleges wrongful termination based on disability discrimination. The employer failed to engage in the interactive process to provide reasonable accommodations and terminated the manager while on medical leave. Additionally, the employer’s failure to disclose the manager’s status during a health care plan application process further exacerbated the situation. This example underscores the importance of employers’ duty to reasonably accommodate employees with disabilities under the Americans with Disabilities Act (ADA) and similar state laws, as well as the potential financial ramifications of non-compliance.
Sexual Assault:
- Allegations of sexual harassment and assault by multiple supervisors in a warehouse environment resulted in a significant settlement and defense costs exceeding $2.5 million. The case highlights the severe impact of workplace sexual harassment and assault on victims and the legal obligations of employers to maintain a safe and harassment-free work environment under Title VII of the Civil Rights Act of 1964. Additionally, the subsequent retaliation against the victim underscores the importance of robust anti-retaliation policies and enforcement mechanisms.
Sale of Assets & Bankruptcy:
- This case involves allegations of breach of fiduciary duty and fraudulent transfer during the sale of assets in bankruptcy proceedings. The accusations include using company funds for personal gain, overpaying for office space, and improper asset transfers. Such actions can lead to significant legal and financial consequences, as demonstrated by the substantial settlement and defense costs incurred. This example highlights the importance of transparency, accountability, and adherence to fiduciary duties in corporate transactions, especially in financially distressed situations.
Claim by Founders:
- Founders of a medical device company allege breach of employment contracts following aggressive actions by new board members appointed during a Series “B” Stock Offering. The case underscores the challenges and risks associated with corporate governance changes and conflicts of interest in startups and emerging companies. The substantial defense costs incurred, despite the lack of coverage for amounts owed under employment contracts, illustrate the complexities and costs of defending against such claims.
Wrongful Termination (1):
- An employee’s termination following a business dispute with an independent contractor’s brother raises allegations of retaliation. Despite the company’s assertion of other reasons for termination, the settlement and defense costs exceeded $200,000, indicating the potential risks and costs associated with retaliation claims under employment laws.
Wrongful Termination (2):
- Allegations of wrongful termination based on age and threats to disclose violations of non-profit laws highlight the potential legal risks associated with termination decisions perceived as retaliatory or discriminatory. The settlement and defense costs exceeding $120,000 underscore the financial implications of defending against such claims, even when the underlying allegations may seem unsubstantiated.
Religious Discrimination:
- The refusal to hire an individual based on their Mormon faith raises allegations of religious discrimination. Despite the relatively lower defense and indemnity costs, this case underscores the legal obligations of employers to refrain from discriminatory hiring practices based on religious beliefs under Title VII and similar state laws.
Quid Pro Quo:
- Allegations of sexual harassment and retaliation following the termination of a sexual relationship with a manager highlight the pervasive issue of workplace harassment and the legal obligations of employers to prevent and address such misconduct under Title VII and related laws. The substantial defense and indemnity costs emphasize the financial consequences of failing to adequately address harassment complaints.
Retaliation:
- Allegations of wrongful termination in retaliation for testifying on behalf of another worker’s case underscore the importance of anti-retaliation protections under employment contracts and relevant laws. The total defense and settlement costs exceeding $120,000 illustrate the potential financial liabilities associated with retaliation claims and the importance of robust compliance mechanisms.
These examples provide insights into various aspects of employment-related claims, including discrimination, harassment, retaliation, and wrongful termination, highlighting the legal obligations of employers and the potential financial risks of non-compliance.