Retaliation Claims Skyrocketing
Bosses need to train managers frequently and have an effective process for investigating charges.
The number of retaliation lawsuits filed against employers is booming. In fiscal year 2009, such claims jumped nearly 85%, to 33,613, from 18,198 in fiscal 1997, according to the Equal Employment Opportunity Commission. Most cases result from employees being fired, demoted or denied promotion.
Better informed employees, zealous trial lawyers and a bum economy account for much of the increase. More workers are fighting layoffs or want to erase black marks from personnel files, so they sometimes are willing to push back by filing workplace retaliation claims.
Recent U.S. Supreme Court cases have made it easier for workers to sue. Retaliation is often easier to prove than discrimination, and the punitive and compensatory damages are the same. Often retaliation charges are piggybacked onto discrimination cases. “Virtually all of my cases with discrimination claims now include a retaliation claim,” says Gary Batke, an attorney with Bailey Cavalieri LLC. All a worker has to do is prove that he or she engaged in a legally protected activity and incurred negative consequences, says Batke. Employers have the burden of making a business case for their actions.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Employers need to take steps to avoid getting hit with retaliation claims. Have a zero tolerance policy for retaliation, and train supervisors frequently. Provide them with specific examples. Retaliation isn’t limited just to firings and demotions. It can include lesser actions, such as changing an employee’s schedule or excluding an employee from meetings.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
-
Top Tax Stories of 2024 and Key Changes to Watch for 2025
Tax News The Kiplinger tax team is looking back at popular tax stories and looking ahead to potential tax changes in the new year.
By Kelley R. Taylor Published
-
Chanel Bags at Costco and Other Surprise High-End Deals
Where to find luxury items and clothes at a discount.
By Brittany Leitner Published
-
Europe Faces Economic and Political Headwinds Next Year
The Letter Challenges for Europe: Potential tariffs, high energy prices and more competition from China will weigh on the bloc in 2025.
By Rodrigo Sermeño Published
-
Don't Sleep on Japan's Economic Transformation
The Letter After almost three lost decades, Japan — one of the world's biggest economies — is finally showing signs of life.
By Rodrigo Sermeño Published
-
Kiplinger Outlook: Telecom Companies Brace for Tough Times
The Letter The telecom industry is entering a new era that threatens profitability. But the coming Trump administration will make it easier for the major players to adjust.
By John Miley Published
-
Start-ups Trying to (Profitably) Solve the World’s Hardest Problems
The Letter More investors are interested in companies working on breakthrough science to tackle huge societal challenges. The field of deep tech has major tailwinds, too.
By John Miley Published
-
The Big Questions for AR’s Future
The Letter As Meta shows off a flashy AR prototype, Microsoft quietly stops supporting its own AR headset. The two companies highlight the promise and peril of AR.
By John Miley Published
-
China's Economy Faces Darkening Outlook
The Letter What the slowdown in China means for U.S. businesses.
By Rodrigo Sermeño Published
-
AI Start-ups Keep Scoring Huge Sums
The Kiplinger Letter Investors continue to make bigger bets on artificial intelligence start-ups, even for small teams with no revenue. Some backers think a startling tech breakthrough is near.
By John Miley Published
-
Should We Worry About the Slowing U.S. Economy
The Letter With the labor market cooling off and financial markets turning jittery, just how healthy is the economy right now?
By David Payne Published