Employment Practices Liability Claims Scenarios Part 2

December 19, 2018

Real Examples of EPLI Harassment Claims and Lawsuits

Employment Practices Liability Insurance can help protect your business against accusations of wrongful termination, harassment, and more. No matter how cautious you are, you never know when a claim may arise that could potentially harm your business’ reputation. Here some examples of real employment practices liability claims that have been filed.

Discrimination Claims

  • Disability Claim: A company was sued by a disabled job applicant when an employer told the applicant that they had no openings for someone in a wheelchair. The disabled applicant was awarded $3.5M.
  • Racial Discrimination: A customer of Asian-Indian decent sued a retail store for alleged racial and ethnic discrimination. An employee was caught on surveillance video dancing around the store with a towel on his head. The customer was awarded $420,000.
  • Pregnancy Discrimination: An employee returned from maternity leave and felt ill. She saw the company nurse and needed more time off to deal with complications from her pregnancy. Even though she provided a doctor’s note for the additional days she missed, as the company requested, she was still fired. She was awarded $500,000.
  • Disability Claim: A manager claimed his company did not engage in the interactive process to reasonably accommodate him and his disability. While he was on medical leave his company failed to mention him in the application process for a new health care plane (which required the company to disclose any employee currently out on disability) and then fired him. He sued for disability discrimination and was awarded $600,000.
  • Age Discrimination: A 62-year old sales representative sued his company for age discrimination. The company failed to document the employee’s poor performance in not meeting his sales quota. He won $1M in the suit.
  • Gender Discrimination: A female employee claimed her company required a strength test for career advancement. 100% of those who passed the strength test were men. She sued the company for gender discrimination and was awarded $2.3M.
  • Religious Discrimination: A female prospect claimed that she was not offered a job at a school where she was qualified for the position. She claimed they refused to hire her because of her Mormon faith and feared she might spread her beliefs to the children at the school. She sued the school for religious discrimination and received $40,000.
  • Religious Discrimination: A female employee claimed her company passed her up for promotion after they learned she was not Christian. The company had stated they would only hire Christians. She was awarded $117,000.
  • Racial Discrimination: An African-American sanitation worker sued his former employer, a waste service company for race discrimination. He alleged that he was subjected to a hostile work
    environment and harassed due to his race. He further alleged that he was paid less than white employees who performed the same job. The jury awarded him with $2.6M, broken down to$600K for compensatory damages and $2M for punitive damages.
  • Pregnancy Discrimination: A female project manager sued her employer, a technology company, for pregnancy discrimination. She alleged that she received a negative evaluation and was terminated due to her pregnancy and leave of absence. She was awarded $4.8M.
  • Age Discrimination: After a downsizing, a group of older, long-term employees who were let go claimed that they were discriminated on by age since a greater number of younger, shorter-term workers were retained than were let go. A jury determined that the allegations were without merit based upon the evidence presented during a lengthy trial. They were paid $975,000 in settlements.

Note: Keep in mind that every policy is unique and have different coverage options and limits. The claims in this post do not contain sufficient information to determine whether or not coverage is included in the policy. As a result, similar or identical claims to those listed above may result in different outcomes or settlements.

Want to see more examples of claims? Check out other EPLI claims examples below!

Harassment | Discrimination | Wrongful Termination | Retaliation | Hostile Work Environment | Other