They Cost Money All lawsuits cost employers money. And, for some reason, workers’ compensation claimants seem to also file EEOC claims. The goal of the employer is not to give employees a REASON to file lawsuits – of any kind – thus saving costs all around. It’s been my observation it’s easier and more cost effect to obey the law. Don’t hire undocumented workers. Don’t allow discrimination based on age, creed, color or life-style orientation. Don’t allow harassment of any kind. And, put a discrimination-free work environment program into place and TRAIN, TRAIN, TRAIN.
Let’s Look at Two Case Studies Age Discrimination The largest telecommunication company has been sued by the U.S. Equal Employment Opportunity Commission (EEOC), alleging discrimination against workers over the age of 40. The lawsuit filed in U.S. District Court in Manhattan claims the Dallas-based corporation (with revenue of $124 billion last year) had “no legitimate business or reason” for its nationwide policy not to rehire employees who had retired under various retirement and severance programs. At issue in the lawsuit are the company’s Voluntary Retirement Incentive Program and the Enhanced Pension and Retirement Program. According to the EEOC, the company’s denial of reemployment to older workers, in violation of the Age Discrimination in Employment Act, has been going on since at least the fourth quarter of 2006.
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“5-Step Sequence to Coordinate Return-to-Work with ADA Compliance”
Hostile Work Environment The U.S. Equal Employment Opportunity Commission (EEOC) announced a major settlement of a discrimination lawsuit under Title VII of the Civil Rights Act against a major home improvement corporation for $1.72 million and significant remedial relief on behalf of three employees in their twenties who were reportedly subjected to a pervasive sexually hostile work environment and retaliated against for complaining about it.
The former employees, two young men and one woman, were reportedly subjected to widespread and repeated sexual harassment by male and female managers and coworkers at store in Washington state according to the EEOC. The sexually hostile workplace, enduring for more than six months, included physical and verbal abuse culminating in one instance of sexual assault by the store manager. In addition, the manager was cited for implicitly propositioning the female employee for sex related to a recent promotion she received.
The EEOC said the employer failed to take prompt remedial action to stop the sexual harassment and erroneously fired the three victims when they complained. “Corporate America should be on notice that sexual harassment and retaliation will not be tolerated by the EEOC,” said Commission Acting Chairman Stuart Ishimaru. “In this case, severe sex-based harassment of young workers was permitted to run rampant at one of the nation’s largest retailers. It is shocking that store managers actively engaged in, and even encouraged, such blatant unlawful conduct and then retaliated against the victims for objecting to it.” In addition to the $1,720,000 in monetary relief for the three victims, the three-year consent decree resolving the case requires the company to provide comprehensive training to management, non-management, and human resources employees in all Washington and Oregon stores.
Employees will be trained on what constitutes harassment and retaliation, and on their obligation not to harass or retaliate against any individual.
Managers and supervisors will be trained on what constitutes harassment and retaliation, their obligation to provide a discrimination-free work environment, and their responsibilities if an employee complains about harassment or retaliation, or if they observe it.
Human resources personnel will be trained on what constitutes harassment and retaliation, how to institute policies and practices to correct past discrimination and prevent future occurrences, informing complainants about the outcome of internal investigations, and the steps the employer will take to assure a discrimination-free workplace in the future. (workersxzcompxzkit) In addition to the comprehensive training and monetary relief, the consent decree requires the employer to revise its sexual harassment and anti-retaliation policies, issue an anti-harassment statement to all employees in Washington and Oregon, revise its method for tracking employee complaints of harassment, and report regularly to the EEOC on harassment and retaliation complaints which arise in Washington and Oregon stores during the term of the decree.
The EEOC consent decree covers all 50 of the employer’s stores in Washington and Oregon.
WHAT SHOULD YOU DO? In addition to the above, when you settle workers’ compensation claims, make sure to settle ALL potential and current claims. Make sure your TPA works with your legal department on settlement language. PUT THAT IN YOUR account instructions.
Author Robert Elliott,executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-786-8286.
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