Can Employment Practices Liability losses really happen to you?

You bet they can!! During the last five years the legal climate has changed a lot. Today, every type of business has a significant exposure to employment related claims. Following are a few examples of claims that have been experienced by fast food businesses. As you read them, bear in mind that the claim amounts shown do not include legal expenses, which can often be as much as or more than the amount awarded in damages.

DENNY'S: Wrongful Termination

A thirty-seven-year-old waitress was fired-allegedly for fighting with a patron. She alleged that she was attacked by an intoxicated customer and was fired without a review by the regional manager. Asking for a $75,000 settlement, she was offered $25,000 by the owner. A jury awarded a verdict of $130,000.

BURGER KING: Wrongful Termination

A store Manager became a quadriplegic as a result of a car accident. The General Manager assured the Manager that he would have a job following his recovery. But after rehabilitation, the General Manager-saying he was "uncomfortable with a guy in a wheel chair" refused to allow the Manager to return. A settlement of $1,000,000 was asked for, and the plaintiff was offered $75,000 by the franchise owner. A jury awarded the plaintiff $267,000.

KENTUCKY FRIED CHICKEN: Wrongful Termination

A female assistant manager refused to provide her employer with a statement supporting the employers position with regard to an EEOC charge filed by a black employee. Two weeks after the refusal, the assistant managers hours were reduced from 25 to 19 hours per week. Later, she was terminated with the explanation that she wasn't needed because she worked so few hours. A court held that the reduction of hours was the direct result of retaliation and the termination was also the result of retaliation. The plaintiff was awarded back pay for the reduced hours and for the wages while she was out of work. The court also ordered reinstatement at 25 hours per week.

EL TORITO'S: Sexual Harassment

A female employee brought a suit alleging emotional distress, embarrassment, and loss of career and income as a result of six months of sexual harassment by the general manager and the regional manager. She alleged that after the sexual advances were rejected and she complained to higher supervisors, she was denied promotions and raises and given a poor performance evaluation. She also claimed that senior management failed to investigate her complaints and the complaints of other women as well. A jury awarded $144,000 of which $65,000 was punitive damages. A co-worker was awarded $35,000 of which $15,000 was punitive damages.

Note: All of these cases happened prior to the enactment of new laws such as the Americans With Disabilities Act of 1990 and the Civil Rights Act of 1991. Both of these laws make it easier to sue the employer. And both now allow compensatory damages in these types of cases.