Could that employee you recently reprimanded or terminated be seeking revenge by claiming discrimination? Here's how to recognize -- and reduce -- your risk for retaliation claims.
Retaliation claims are coming in at five times the rate of all other types of discrimination claims, according to the most recent statistics from the Equal Employment Opportunity Commission (EEOC). In 2015 alone, the EEOC received 39,757 claims -- the highest number in any of the past 20 years.
Settlement amounts for these claims are climbing too. In 2003, the EEOC levied approximately $80 million in fines for retaliation claims against U.S companies. Ten years later, that number had more than doubled to $169 million.
Part of being a good manager is setting consequences for misbehavior and following through when the behavior is not corrected. But if you've recently had to reprimand or terminate an employee, it may be wise to ask whether that person might seek revenge in the form of a retaliation claim.
Recognize the Risk
The rise in retaliation claims relative to other types of discrimination claims demonstrates that employers are generally aware of the need to avoid discrimination on the basis of race, sex, age, disability, and other protected categories. However, it also demonstrates that many employers aren't thinking through their reprimand or termination policies as they relate to these protected categories.
Generally speaking, employers are allowed to take "adverse actions" like refusing a promotion, demoting, reprimanding, or terminating employees. However, employers are not allowed to do these things in response to an action related to the rights of a protected group -- whether the employee is a member of that protected group or not.
What does this mean? In short, it means that you can reprimand or terminate employees. You just can't do it for reasons that relate to race, sex, age, disability, or any other protected category.
Take a moment to step into the perspective of the EEOC. Remember: this agency's job is to enforce antidiscrimination laws, not to watch how you run your business from day to day. Without the policies and documentation to back up your sound business reasons for taking an adverse action, you may end up looking as if you retaliated for a prohibited reason -- and your business may face a hefty fine as a result.
Reduce the Risk
How can companies reduce the risk of facing retaliation claims or the fines that come with them? Keep these steps in mind: