Explanation of Workplace Discrimination Lawsuits
Lawsuits claiming discriminatory employment practices or unfair treatment in the workplace can be expensive and time-consuming. Lawsuits also can lead your existing workforce as well as the public to question whether the allegations are true. Newspaper and Internet stories about the lawsuit can affect your profits or the community's perception of your organization. Therefore, it's important to understand how discrimination lawsuits work.
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Employment Laws and Regulations
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Title VII of the Civil Rights Act of 1967 prohibits discrimination based on status and characteristics that are not job-related. The U.S. Equal Employment Opportunity Commission enforces Title VII laws, as well as other laws protecting employees against unfair pay practices, sexual harassment, age discrimination and discrimination based on genetic information. One of EEOC's guidelines states: "Employers are required to post notices to all employees advising them of their rights under the laws EEOC enforces and their right to be free from retaliation. Such notices must be accessible, as needed, to persons with visual or other disabilities that affect reading." In addition to federal laws governing employment practices, employers must also adhere to state and local regulations pertaining to fair employment practices. Some jurisdictions also consider sexual orientation as a basis on which discrimination is prohibited.
In-House Handling of Employee Complaints
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When an employee files an initial complaint about workplace discrimination, she usually tells someone in the human resources department. Employers are advised to provide written anti-discriminatory and anti-harassment policies in employee handbooks. When employees complete new-hire orientation, some companies require employees to acknowledge receipt and understanding of these policies. A well-constructed policy also includes the steps to make an in-house complaint. In a human resources department, it's usually the employee relations specialist who handles employee issues. When an employee goes to the HR department to complain, the company is required to take action immediately. Action, in many cases, means to begin an investigation of the allegations. Employers who fail to begin an immediate investigation of employee complaints are not looked upon favorably when the matter escalates to a formal charge of discrimination or a lawsuit.
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Informal versus Formal Discrimination Charges
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An informal complaint of workplace discrimination usually consists of the employee explaining the allegations to an employee relations specialist. The employee relations specialist then investigates the allegations by interviewing witnesses and reviewing documentation. If a supervisor or manager is the person against whom the employee complains, extensive interviews might be scheduled with her. Employers are liable for the actions of their supervisors and managers, therefore, it is imperative for the investigation to address the circumstances with the supervisor or manager involved.
A formal complaint generally refers to the stage when an employee files a charge of discrimination with the EEOC or one of the state human rights organizations. In many states, a human rights agency is also referred to as a Fair Employment Practices Agency (FEPA). The EEOC works collaboratively with FEPAs to address complaints. Government handling of an employee complaint includes investigation, extensive records review and interviews with witnesses and human resources staff.
Litigation Process for Employment Discrimination
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Litigation is a costly process that reduces productivity, consumes witnesses' time and can be prolonged for years. In addition, there is the publicity surrounding employment litigation that can be damaging to an employer's reputation. Workplace Fairness, an advocacy organization for employees' workplace rights, publishes employment cases and settlements, state-by-state, on its website. One of the cases published states: "An Arkansas tree-planting company has agreed to pay $2.75 million to settle a lawsuit in which foreign guest workers accused it of often paying less than the minimum wage and not paying for all hours worked." Publicity of this nature has the potential to destroy a company's image or even encourage other employees to come forward with more allegations about unfair employment practices.
Resolving a Discrimination Lawsuit
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The previous example of a lawsuit that was settled in favor of the employee represents a fair amount of discrimination lawsuits that end in a settlement agreement. In "Entrepreneur" magazine, citing an article in the "Pennsylvania Journal of Employment and Labor Law," states: "Litigating a case through trial costs the employer at least $50,000 and could exceed $500,000. In most cases, the available damages are a fraction of the costs of defense, and there is always the possibility of losing at trial." In addition to a monetary award for the plaintiff employee, there might be other conditions the employer must fulfill to comply with employment laws and regulations. These conditions usually might range from mandatory anti-discrimination and diversity training to rehiring the employee.
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References
- U.S. Equal Employment Opportunity Commission: Federal Laws Prohibiting Job Discrimination Questions and Answers
- Workplace Fairness: Court Cases in the News, Arkansas
- Entrepreneur: Abritration of Employment-Discrimination Lawsuits: The Legalities, Practicalities, and Realities
- U.S. General Accounting Office: Observations on Protections from Discrimination and Reprisal from Whistleblowing
- The Wall Street Journal: Job-Discrimination Cases Tend to Fare Poorly in Federal Court
