Retaliatory discharge claims are on the rise
While political subdivisions may be immune to retaliatory discharge lawsuits, private employers are not and in recent years; we have seen an increase in the number of such lawsuits. For claimant attorneys, retaliatory discharge lawsuits can be a natural complement to their practice and an added revenue source.
Retaliatory discharge lawsuits often seem to arise in situations where the employee and employer are not getting along, the employee realizes they are about to be terminated; and files a questionable claim, e.g., unwitnessed, late-reported, and/or with minor, non-verifiable type injuries. The employer, already irritated with the employee, follows through with the termination.
Employers can legally terminate an employee as long as they have a legitimate non-discriminatory reason for doing so. However, employers should nonetheless be wary of terminating an employee shortly after the employee files a workers’ compensation claim because the employee is likely to sue the employer alleging that the employee was really fired for filing a workers’ compensation claim.
Employers should also keep in mind that the standard workers’ compensation policy does not provide coverage for retaliatory discharge lawsuits. Therefore, the employer may have to defend the lawsuit and pay any settlement or judgment out of pocket. Employment practices liability (EPL) insurance does provide coverage but it is expensive and not all employers carry it.
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