Rise in Workplace Discrimination: What Companies Need to Know
Workplace discrimination charges are on the rise, according to the Equal Employment Opportunity Commission (EEOC). If you own a company and have employees, this is something that affects you.
There were 88,531 new workplace discrimination cases filed in FY 2024. That’s almost a 10% increase from 2023. Between 2021 and 2024, there was an overall 44% surge in workplace discrimination charges.
There are several elements causing the increase in workplace discrimination claims, also known as employment practices liability (EPL) filings. Increased employee awareness of their legal rights, sharp rises in layoffs and firings, and the gradual expansion of employment laws are all playing a role. Experts have seen a direct correlation between layoffs and EPL claim filings. Sixty percent of these claims are initiated by workers who were fired or laid off.
Since 2022, layoffs and firings have increased steadily, causing more displaced workers to consider filing a claim. Those who lose their job and are unable to find another one quickly are more likely to bring a claim against their former employer.
As companies are forcing employees to return to the office, discrimination claims are rising due to more in-person interactions. Sometimes there’s unprofessional conduct that maybe employees could avoid if they were working remotely. Also, workplace functions, business travel, and other in-person events have increased, creating new opportunities for misconduct.
Economic conditions are also playing a role. Inflation over the past few years has increased the financial stakes of employment-related lawsuits. A wrongful termination lawsuit filed by a high-earning employee has a greater potential payout for a significant payout compared to a similar claim from a lower-wage worker.
Employers need to prepare for these possible claims and it starts with following the laws and having the proper documentation to back it up. For example, one common mistake is that employers often fail to align their documentation with termination decisions. An employer might fire a worker for being a poor employee, but the performance reviews show that the person was a stellar employee. So there is some disconnect there.
Employers also fail to follow laws, particularly when it comes to employee accommodations. An example is an employee asking for leave under the Family Medical Leave Act or a state law and that leave may be inappropriately denied. Another example is an employer refusing to make accommodations for a disabled employee under the Americans with Disabilities Act.
There isn’t a single industry facing more impact than others. Instead, company culture plays a large role in determining risk. If an organization has employees, they risk exposure to a claim for discrimination and wrongful termination claims.
Learn More About Corporate Law
Business ownership comes with a lot of concerns. Make sure you understand the laws that encompass corporate law.
Orlando corporate lawyer B.F. Godfrey from Godfrey Legal has the experience and knowledge to help you handle all your business concerns. Turn to us for the guidance you need to protect your business. Schedule a consultation today by filling out the online form or calling (407) 890-0023.
Source:
insurancebusinessmag.com/us/news/professional-liability/workplace-discrimination-claims-surging–what-it-means-for-employers-529103.aspx
