What exposure does an employer face when sued for discrimination or wrongful termination?
First, unless the employer has insurance coverage for these types of claims, the employer may incur significant attorney’s fees and costs in defending the lawsuit. If the case goes to trial and the employee prevails, the employer could be held responsible for all damages caused by the discrimination or wrongful termination. These damages could include emotional distress, lost wages both past and future and medical care, including psychiatric treatment. If the conduct is sufficiently egregious, the jury could award punitive damages against the employer, which are above the amount to compensate the employee, and serve as a form of civil fine to punish the employer and make an example in order to deter others from similar conduct. Finally, the employer could be required to pay the employee’s legal fees. How can the employer minimize discrimination and wrongful termination cases? First, the employer should establish a zero-tolerance policy regarding all forms of discrimination. The policy
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